Opens in a new tab

Breaking news

Cyprus Industrial Production Slips 1.3% In August As Manufacturing Weakens

Cyprus’ industrial production fell by 1.3% year on year in August 2026, as weaker manufacturing output outweighed growth in mining, water supply and electricity, according to the Cyprus Statistical Service (Cystat).

The Industrial Production Index stood at 90.9 points, with 2021 as the base year at 100. Despite the August decline, industrial production increased by 1.2% over the first eight months of 2026 compared with the same period last year.

Manufacturing Weakens As Mining Output Rises

Manufacturing production dropped by 2.5% year on year in August. By contrast, mining and quarrying grew by 11%, while water supply and materials recovery increased by 5.7%. Electricity supply edged up by 0.1%.

Within manufacturing, rubber and plastic products recorded the strongest growth, rising by 7.1%. Production of wood and cork products, excluding furniture, increased by 6.4%.

Machinery and equipment, motor vehicles and other transport equipment saw the sharpest decline, with output falling by 12.8%. Refined petroleum products, chemicals and chemical products, and pharmaceutical products and preparations each declined by 7.1%. Production of other non-metallic mineral products fell by 4.8%.

Eight-Month Growth Remains Uneven

From January to August, water collection, treatment and supply recorded the strongest increase, rising by 11.5% compared with the same period in 2025.

Basic metals and fabricated metal products grew by 5.5%, while wood and cork products, excluding furniture, increased by 5%.

Materials recovery recorded the largest cumulative decline, falling by 6.7%. Production of machinery and equipment, motor vehicles and other transport equipment decreased by 6.2%.

The figures highlight uneven performance across Cyprus’ industrial sector. Growth in water-related activities and selected manufacturing segments has supported overall output, but continued weakness in machinery and transport equipment remains a drag on the sector.

Cyprus Tax-To-GDP Ratio Rises To 36.3% In 2025

Cyprus’ tax-to-GDP ratio edged up to 36.3% in 2025, from 36% in 2024, remaining below the European Union and euro area averages, according to Eurostat.

Across the EU, the ratio rose to 40.7% from 40.2%, while the euro area average increased to 41.3% from 40.7%.

EU Tax Revenues Reach €7.68 Trillion

The tax-to-GDP ratio measures revenue from taxes and net social contributions as a share of gross domestic product. It provides an indication of public revenue relative to the size of an economy, although national tax systems and social contribution rules vary.

EU governments collected €7.68 trillion in taxes and social contributions in 2025, an increase of €401 billion compared with the previous year.

France Records Highest Ratio

France had the EU’s highest tax-to-GDP ratio at 46%, followed by Belgium at 44.7%, Denmark at 44.3% and Austria at 43.9%.

At the other end of the scale, Ireland recorded the lowest ratio at 22.7%. Romania followed at 29.3%, Malta at 30.3% and Bulgaria at 30.6%.

Ratios Increase In 19 Member States

The tax-to-GDP ratio rose in 19 EU countries in 2025. Germany recorded the largest increase, climbing from 40.3% to 41.4%. Malta’s ratio rose from 29.3% to 30.3%, while Spain’s increased from 37.2% to 38.1%.

Eight member states recorded declines. Sweden saw the largest fall, from 41.8% to 41.2%, followed by Latvia, where the ratio dropped from 34.9% to 34.2%.

Cyprus’ 0.3-percentage-point increase was more modest than some of the changes elsewhere in the bloc. Its ratio nevertheless rose alongside the EU and euro area averages, reflecting a broader increase in tax and social contribution revenue relative to economic output.

Aretilaw firm
Uol
The Future Forbes Realty Global Properties
eCredo

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter