Retail Sector Posts Strong Performance In 2025, Paving The Way For Future Growth

by THEFUTURE.TEAM

February 5, 2026

Robust Growth Across Key Metrics

The retail sector experienced one of its strongest years in 2025, recording significant gains in both value and volume indices. This dual growth reflects an increase in not only the number of products sold but also their overall market value, underscoring a dynamic shift in the industry’s performance.

Sector’s Impact On The Economy

Today, retail is recognized as a pivotal industry within the broader economic landscape. As the largest employer in the market, retail not only drives job creation but also ranks second in its contribution to national GDP. Business experts point to an anticipated continued upward trajectory into 2026, bolstered by the influx of new international brands and the expansion of existing retail establishments. In Cyprus, for instance, retail now contributes roughly 16% to the GDP while employing about 20% of the workforce. The food segment alone is generating nearly 3 billion in annual turnover, and when combined with apparel, electronics, DIY, and other retail categories, the numbers are truly impressive.

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Statistical Insights And Market Trends

According to the latest report from the Statistical Service of Cyprus, the period from January to December 2025 witnessed a 6.1% rise in the Value Index of Retail Turnover and a 7.9% increase in the Volume Index compared to 2024. Notably, specialized stores dealing in food, beverages, and tobacco led value gains with a 14.5% increase, while clothing and footwear posted a similar 14.5% rise in volume. In December alone, the Value Index surged by 5.8% and the Volume Index by 8.9% year-on-year.

Optimistic Outlook For 2026

Marios Antoniou, Secretary General of the Pan-Cypriot Retail Association (PASYLE), asserted the rising prominence of retail in the national economy. Following tourism, retail now stands as the largest sector in this regard, with strong investor confidence demonstrated by active waitlists at shopping centers and the announcement of two upcoming retail complexes in Limassol. These developments vividly illustrate the robust market sentiment from both local and foreign investors.

With these encouraging trends, industry leaders forecast positive growth rates for 2026, suggesting that the retail sector is well-positioned to continue its upward momentum and further solidify its economic significance.

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Greek And Cypriot Banks Propel Economic Growth With Aggressive Credit Expansion

by THEFUTURE.TEAM

May 25, 2026

Robust Q1 Growth Sets The Stage

Banks in Greece and Cyprus are accelerating lending activity, with total credit expansion projected to approach or exceed €15 billion in 2026. The increase is reinforcing the banking sector’s role in supporting profitability and broader economic growth across the region.

Targeted Lending Initiatives And Sector Performance

According to reports by Greek business outlet Newmoney, banks are increasingly relying on credit expansion to sustain earnings growth as interest rate dynamics shift across Europe. First-quarter results already point to strong momentum in lending activity.

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Eurobank has set a target of €3.8 billion in credit expansion this year. National Bank of Greece and Piraeus Bank are each targeting €3 billion, while Alpha Bank aims for €3.5 billion. Smaller lenders are also expanding aggressively, with CrediaBank targeting €1.2 billion and Optima Bank aiming for €1.1 billion.

Notable Banking Results Across Markets

First-quarter results underline the scale of the lending rebound. Banks that have reported Q1 figures recorded cumulative credit expansion of €4.7 billion. Piraeus Bank increased its loan portfolio to €38.6 billion, while net credit expansion reached €1.3 billion across major business segments. At National Bank of Greece, new loan disbursements rose 50%, contributing to net credit expansion of €500 million.

Meanwhile, Eurobank reported a 9.8% increase in net credit expansion to €1.1 billion. In Cyprus, Bank of Cyprus recorded Q1 lending of €829 million, up 9% compared with the end of 2025, while Optima Bank posted a 27% year-on-year increase in loan disbursements to €1 billion.

Sectoral Dynamics And Asset Quality Improvements

A recent report from UBS showed that business lending remained the strongest growth driver in March, increasing 10.9% year-on-year. Consumer lending rose 7.7%, while housing loans increased 1.1%. Asset quality also continued to improve. Non-performing loans declined to 3.3% in Q4 2025, down 30 basis points from the previous quarter, reflecting the sector’s ongoing balance-sheet clean-up.

Despite the strong lending momentum, profitability remained broadly stable in the first quarter. Combined net profits at major banks, including National Bank of Greece, Piraeus Bank, Eurobank, Optima Bank and Bank of Cyprus, totaled €1.12 billion, representing a marginal year-on-year decline of 0.27%.

Profitability And Revenue Breakdown

Profit trends varied across institutions during the quarter. Net profit at National Bank of Greece declined 9.9%, while Piraeus Bank reported a 1.42% decrease. By contrast, Eurobank increased profitability by 5.3%. In Cyprus, Bank of Cyprus reported a 3% increase in profit, while Optima Bank posted a 22% rise. Across the sector, net interest income increased 1.4% to €1.93 billion, although performance differed among individual banks. Fee income recorded stronger growth, rising 20% year-on-year to €590 million.

Long-Term Trends And Strategic Impact

Over the past year, listed banks in Greece and Cyprus generated combined post-tax profits of €5.458 billion, up 15.4% from the previous year. During the same period, net interest income declined 4.2% to €9.307 billion, reflecting pressure from changing rate conditions.

Balance-sheet quality continued to strengthen as non-performing loans fell to €5.7 billion, down 5.2% compared with December 2024. Since March 2016, banks in the two markets have reduced non-performing exposures by an estimated €101.5 billion, equivalent to a cumulative decline of 94.7%.

The sustained improvement in asset quality, combined with expanding loan portfolios, is reinforcing the sector’s role in financing business activity and economic recovery across Greece and Cyprus.

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