Industrial production costs in Cyprus saw a 1.9% decline in 2024 compared to the previous year, according to the Cyprus Statistical Service (CyStat). The latest data reflects a broader economic trend of stabilizing prices across key sectors, despite fluctuations in specific industries.
The Index of Industrial Output Prices for December 2024 stood at 122.3 units (base 2021=100), marking a 0.1% month-on-month increase from November. However, on an annual basis, the index recorded a 1.5% drop compared to December 2023.
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Sectoral Performance: Stability And Declines
- Electricity supply saw the sharpest decline, with prices plunging 10.5% year-on-year.
- Mining and quarrying posted a 0.7% increase, while manufacturing rose by 0.9%.
- Water supply and materials recovery remained stable year-over-year but recorded a 0.3% monthly increase in December.
Manufacturing Trends: Growth In High-Tech And Consumer Goods
Despite the overall decline in industrial prices, several manufacturing divisions experienced growth:
- Furniture, electronics, and textiles saw notable increases, with the manufacture of furniture, other manufacturing, and machinery repair rising by 4.7%.
- Electronic and optical products grew by 4.3%, while paper and printing increased by 3.5%.
- Pharmaceuticals and chemicals saw a 2.0% uptick, reinforcing the strength of Cyprus’ chemical production sector.
Conversely, declines were observed in:
- Rubber and plastic products (-0.6%)
- Basic metals and fabricated metal products (-0.6%)
- Other non-metallic mineral products (-0.1%)
Looking Ahead: Economic Implications
The drop in industrial output prices suggests lower production costs for businesses, potentially easing inflationary pressures. However, sector-specific gains—particularly in manufacturing, technology, and pharmaceuticals—signal resilience in high-value industries. The continued decline in electricity prices could further impact industrial production costs, shaping economic conditions in 2025.
With Cyprus’ industrial landscape evolving, businesses will need to adapt to shifting cost structures and market dynamics to remain competitive in the coming year.
