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Cyprus Economy Maintains Resilience With Robust Growth In 2025

Overview Of Economic Resilience

Cyprus’ economy sustained a strong growth trajectory in 2025, with Gross Domestic Product (GDP) expanding by 3.8% on an annual basis and by 4.5% in the fourth quarter. Updated official data released on Monday confirm continued economic momentum, supported by key domestic sectors.

Adjustment Of National Accounts

Revisions to annual and quarterly National Accounts were introduced following updates in public finances, Balance of Payments data, and the integration of the 2022 Supply and Use Tables. While these methodological adjustments refined the data, they did not alter the broader growth narrative, which remains positive.

Robust Annual And Quarterly Performance

In real terms, GDP increased by 3.8% in 2025. At current prices, growth reached 4.9%, with total output amounting to €36.48 billion. This performance was underpinned by strong activity in information and communications, alongside solid contributions from tourism, retail trade, and construction. These sectors continue to play a central role in supporting overall economic expansion.

Sector-Specific Drivers

During the fourth quarter of 2025, GDP grew by 4.5% compared to the same period in 2024, while quarter-on-quarter growth reached 1.4%. Construction recorded the highest increase at 9.4%, reflecting ongoing development activity. Information and communications expanded by 8%, while the combined retail and tourism sectors grew by 7.2%, highlighting their continued importance for economic momentum.

Shifts In Consumption And Investment

On the expenditure side, private consumption rose by 3.4% during the fourth quarter, while public consumption increased by 4.4%, supporting overall demand. In contrast, gross fixed capital formation declined by 15.2%, primarily due to fluctuations in high-value investments, including ships and aircraft, which tend to introduce volatility into investment data.

External Sector Contributions

The external sector also contributed positively to GDP composition. Exports of goods and services increased by 2.9%, while imports declined by 4.2%. This shift reflects improved external balances and continued competitiveness in export-oriented sectors.

Outlook

Overall, the data point to a balanced and steadily expanding economy, supported by domestic demand, sectoral performance, and favorable external dynamics. Future growth will depend on investment stabilization and broader international economic conditions.

Copyright Law Struggles To Keep Up With AI Training

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.

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