public debt may fall below 40% of GDP.

Morningstar DBRS has maintained Cyprus’s rating at A, but changed the outlook from stable to positive. This means the country may receive a rating upgrade in the future.

The agency expects the Cypriot economy to grow by around 3% per year, while the budget continues to run a surplus. According to DBRS forecasts, public debt will drop below 40% of GDP by 2029.

Among the strengths cited are sound public finances, the banking sector and EU membership. The main challenges remain the small size of the economy and relatively low productivity.

@cyprus_kipr