DBRS: New stability program signals fiscal policy continuity in Cyprus

While Cyprus’ economic growth is expected to remain strong, the economic and the fiscal outlooks are exposed to significant downside risks, DBRS Morningstar said in a commentary on the country’s new Stability Program.

In its commentary, titled “Cyprus: New Stability Program Signals Fiscal Policy Continuity,” the rating agency noted that the new government has presented its first official medium-term budgetary targets since taking office.

“Similar to the projections of the previous government’s Draft Budget 2023 released in October 2022, the Stability Program 2023-2026, published on May 3, forecasts recurring budgetary surpluses and therefore a marked reduction in the high public debt burden in the next few years,” it added.