Digital Economy & AI: Cyprus’ Digital Cooperation Organisation (DCO) chief Deemah AlYahya visited the island to deepen ties on digital investment, AI, connectivity and infrastructure, including progress review of the DFDI Cyprus initiative with Invest Cyprus. Macroeconomy: The Central Bank of Cyprus cut its growth forecasts for 2026 and 2027, citing the Middle East war’s drag and warning risks are tilted to weaker growth and higher inflation. Energy-Water Planning: A new push argues Cyprus can’t treat energy and water separately anymore, calling for an integrated energy-water strategy out to 2040 as desalination dependence rises. Consumer Costs: Cyprus’ Consumer Protection Service reports further grocery price pressure in May, with big jumps in processed foods like cold cuts and cooking oil, while some fresh produce eased month-on-month. Defence Funding: Cyprus received its first €177.2m SAFE defence payment, a 15% advance to speed up defence projects and modernisation aligned with EU priorities. EU Budget Talks: EU leaders pressed Ireland to propose new “own resources” by October for the 2028–2034 budget, as the bloc prepares for a tough fight over spending and financing. Tourism & Transport: Taxi operators warn of a tourism slump linked to Middle East instability, estimating visitor numbers down about 30% and calling for support to protect licensed drivers. Labour & Services: Lifeguard shortages persist, with the biggest gaps in Limassol and Paphos, as staffing and equipment issues threaten beach safety coverage. Productivity Focus: A Cyprus Competitiveness Report flags low productivity as the economy’s main structural weakness, urging more greenfield investment and faster reform implementation. Agri-Tech Matchmaking: Keve launched a June agri-food/agri-tech matchmaking push via the NEXTCHAIN platform to link Cyprus firms with international partners and pilot opportunities.