A new study from the University of Cyprus warns about serious problems for the economy. The Economics Research Centre (ERC) found that rising global temperatures will hurt Cyprus. The research shows possible big drops in GDP, investment, and spending. These results suggest a bad future for the country's money.
The study used a special model. It connects greenhouse gases to higher temperatures. This affects how much people can produce and the health of businesses. The model looked at three different ways the world might control emissions. These ranged from doing nothing to being very sustainable.
In the worst case, Cyprus could lose €29 billion in GDP by 2050. By the year 2100, this loss could be €162 billion. Even in a better scenario, the economy will still lose money. GDP losses are predicted to be €4 billion by 2050 and €23 billion by 2100. Climate change hurts production and demand.
Important parts of the economy are at risk. Tourism, which brings in a lot of money, could lose €3.8 billion by 2050. Financial services might lose €2.3 billion. Farming will also be affected by the changing environment.
The study also says the country will have problems with its trade balance. Less tourism means less tax money. This makes money problems worse. The ERC’s findings are a strong message. Cyprus needs to act now to protect its future economy.