Introduction
According to Michellis Christou, CEO of Diplomat Cyprus, the demand in the FMCG sector remains steady but selective, with increased pressure on prices and profit margins.
Impact of Geopolitical Developments
Geopolitical developments create more risks than opportunities in the sector, but also accelerate necessary adaptations in inventory management, supply chain, and commercial strategy.
Possible State Interventions
Christou suggests supporting energy and transportation costs for businesses and households, as well as subsidizing low-income individuals for vacations in Cyprus to boost hotel occupancy and related businesses.
Conclusion
The first half of 2026 confirmed that the Cypriot economy remains strong and resilient, with healthy fundamentals and positive consumption. However, a gradual slowdown is evident, with inflation being a key challenge.
- Premium categories offer opportunities for growth
- Supply chain and logistics play a crucial role in adapting to geopolitical developments
- State interventions can support businesses and households in navigating these challenges