Cyprus Service Sector Turnover Rises In 2025, Led By Tourism Growth

Cyprus Service Sector Expands In 2025

Cyprus’s service sector recorded strong turnover growth in 2025, driven largely by tourism-related industries and expanding professional services, according to data released by the national statistical service. The figures highlight the continued importance of services as the backbone of the Cypriot economy.

Tourism And Hospitality Lead Growth

Accommodation and food services recorded the strongest increase, with turnover rising by 9.5% compared with 2024. The result reflects sustained tourism demand and continued growth across hospitality businesses. Administrative and support services followed with an increase of 7.4%, reflecting rising activity in business support sectors.

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Broad Gains Across Service Industries

Several additional sectors also reported steady growth during the year. Professional, scientific and technical activities expanded by 4.6%, while the communications sector recorded growth of 4.3%. Transport and storage increased by 2.8%, supported by higher logistics and tourism-related demand. Real estate management registered a smaller rise of 0.4%.

Fourth Quarter Maintains Momentum

The fourth quarter of 2025 reaffirmed the overall positive annual trend. Detailed quarterly analysis revealed a continued strong performance in key segments:

Accommodation and food services increased by 9.5%
Real estate management grew by 5.7%
Administrative and support activities advanced by 4.1%
Professional, scientific, and technical activities rose by 3.4%
Communications improved by 2.1%
Transport and storage saw a 1.4% increase

Service Economy Remains Key Growth Driver

Recent data underscores the resilience of Cyprus’s service-driven economic model. Strong tourism performance continues to support related industries such as transport, logistics and professional services, reinforcing the sector’s role as a central pillar of the country’s economic growth.

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Cyprus’ Poverty And Social Exclusion Risk Stands At 17.1%

by THEFUTURE.TEAM

October 20, 2026

Cyprus recorded a poverty or social exclusion risk rate of 17.1% in 2025, below the European Union average of 20.9%, according to new Eurostat figures. Across the bloc, however, more than 92 million people continued to face the risk, highlighting persistent social and economic inequalities.

More Than 92 Million People At Risk Across The EU

A total of 92.7 million people across the EU were at risk of poverty or social exclusion in 2025, equivalent to just over one in five residents.

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Cyprus is treated as a single statistical region because of its size, unlike many member states divided into multiple regions for comparison. Its national figure therefore provides an overall picture but does not capture differences between districts or communities.

Regional Gaps Remain Stark Across Europe

The risk varied considerably across the EU, with the highest rates concentrated largely in southern, eastern and outermost regions. In 24 of the 243 regions with available data, at least 31.5% of the population faced poverty or social exclusion.

These regions were located in Spain, Bulgaria, Greece, Italy, France and Romania, as well as Brussels in Belgium and Bremen in north-western Germany.

French Guiana recorded the highest rate, at 54.8%, followed by Calabria in southern Italy at 45.3% and Sicily at 44%. Melilla, a Spanish autonomous city, recorded 43.7%, while Réunion, another French outermost region, stood at 42.3%.

Central Europe Records The Lowest Rates

At the other end of the scale, 24 regions reported poverty or social exclusion risk rates below 13% in 2025. These included five eastern EU capital regions: Bratislava in Slovakia, Warsaw in Poland, Prague in the Czech Republic, Budapest in Hungary and Zagreb in Croatia.

Other regions with low rates were concentrated in northern Italy, the Czech Republic, northern Belgium, Hungary, Poland and Austria, illustrating the uneven distribution of economic security across Europe.

Cyprus Remains Below The EU Average

Cyprus’ rate of 17.1% places it below the EU average, although it remains higher than the levels recorded in the bloc’s lowest-risk regions.

The figures suggest that Cyprus performs relatively well compared with the wider EU, but poverty and social exclusion remain significant challenges across the bloc, affecting more than 92 million people.

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