Cyprus’ Economic Outlook Strengthens In 2025
Updated data from the Cyprus Statistical Service confirm solid economic growth throughout 2025. Revised quarterly and annual figures highlight continued expansion, supported by adjustments in government finance and balance of payments statistics.
Revised Quarterly Figures Validate Strong Growth
Latest national accounts, incorporating balanced supply and use tables for 2022, show that GDP in the fourth quarter increased by 4.5% compared with the same period in 2024 on a seasonally adjusted basis. These revisions reinforce the consistency of growth despite methodological updates.
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Key Sectors Driving Progress
Sectoral data based on the production approach indicate that growth was driven primarily by wholesale and retail trade, including motor vehicle repair, alongside information and communication, hotels and restaurants, and construction. Performance across these industries reflects strong domestic demand and continued momentum in services and infrastructure-related activity.
Annual Growth And Strategic Impacts
Revised annual figures confirm real GDP growth of 3.8% in 2025. When price effects are included, overall GDP increased by 4.9%, combining real expansion with inflationary pressures. Sector contributions highlight the structural role of services and construction in sustaining economic performance over the year.
Outlook
Recent data point to a balanced growth model supported by key service sectors and construction activity. This structure positions Cyprus to maintain economic momentum as global conditions continue to evolve.
