The Cypriot economy is on a sound footing due to solid economic growth and declining inflation, but its high integration with EU and non-EU economies make geopolitical and trade tensions a non-negligible risks, according to a macroeconomic imbalances review published by the European Commission as part of its European Semester process.
The Commission on 26 March published six in-depth reviews (IDRs) for Cyprus, the Netherlands, Romania, Slovakia, Spain, and Sweden,
