Electricity prices for a defined group of non-household consumers in Cyprus reached €0.23 per kilowatt-hour in the first half of 2026, placing the country among the most expensive in the EU, according to Eurostat.

The rate matched Italy and exceeded the EU average of €0.18. Ireland recorded the highest price at €0.27 per kilowatt-hour.

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The figures cover non-household consumers with annual electricity consumption of between 500 and 2,000 megawatt-hours, rather than all businesses or households.

EU Electricity Prices Continued To Fall

Across the EU, average prices for this consumer group declined by 2% compared with the second half of 2025 and were 5.4% lower year on year.

The lowest rates were recorded in Finland (€0.09 per kWh) and Sweden (€0.12), followed by Denmark, Spain and Portugal, all at €0.13.

Prices Fell In Most Member States

Electricity prices declined year on year in 19 EU countries during the first half of 2026. Luxembourg recorded the largest fall, at 23.8%, followed by Czechia (11.9%) and Greece (11.8%).

Prices increased in eight member states, led by Sweden (18.8%), Finland (18.7%) and Bulgaria (14.2%). Despite the sharp increases, Finland and Sweden continued to have the lowest electricity prices in the bloc.

More than half of businesses in Cyprus reported being targeted by cyberattacks in 2025, with around half of those affected suffering financial losses averaging €12,000, according to the annual report of the Digital Security Authority of Cyprus.

The findings are based on a survey of 459 companies across the industry, commerce and services sectors, conducted between September and November 2025. The report also found that 33% of citizens had experienced a cyberattack.

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Businesses Face Frequent Attacks And Financial Losses

Some 53% of surveyed businesses reported a cyberattack in 2025. The average frequency increased to one attack or breach every eight days, compared with every 10 days in 2024.

Among targeted companies, 51% reported financial losses, averaging €12,000. Although this was slightly below the 55% recorded in 2024, the financial impact remains significant.

Phishing continued to be the most common threat, affecting 44% of businesses. Despite the persistent risk, preparedness remains uneven: nearly one in four companies had not created, updated or reviewed its cybersecurity policies for more than a year.

Awareness of training opportunities improved, with 43% of businesses unaware of cybersecurity seminars, down from 50% in 2024. Participation increased from 13% to 22%. However, 48% of companies that had not experienced an attack believed they were unlikely to become targets, up from 37% in 2024. The Authority warned that no business should assume it is too small or insignificant to attract cybercriminals.

One In Three Citizens Reported An Attack

The proportion of citizens reporting a cyberattack fell to 33% in 2025, from 49% in 2024. Those affected experienced an average of 25.9 attacks during the year, compared with 28.5 previously.

Financial losses were less common among individuals: 17% of those targeted reported a financial cost, averaging €141. Phishing remained the leading type of attack, affecting 22% of citizens, down from 39% in 2024.

Despite the decline, awareness of future risks was high, with 89% of citizens who had not experienced an attack recognising that they could be targeted. However, 74% were unaware of available cybersecurity seminars, and only 15% had participated. Those who attended reported adopting practical measures such as stronger passwords and avoiding suspicious websites.

Cyber Resilience Becomes A National Priority

The 2025 assessment marks the fourth consecutive annual review of cybersecurity in Cyprus. Presented at a stakeholder meeting on December 17, 2025, its findings will inform future training and public-awareness campaigns.

Communications Commissioner Marios Pieris said digitalisation creates opportunities for growth and innovation but also increases the need to protect critical infrastructure and services. Cyber resilience, he stressed, is essential to national security, economic development and public trust.

The Digital Security Authority also reported progress in implementing the country’s 2024–2026 cybersecurity priorities. These include strengthening national resilience, updating the legal and regulatory framework and protecting critical infrastructure. Director General Antonis Antoniades said the Authority expanded its supervisory and support activities for essential and important entities during 2025.

The year also saw the completion of preparations to align Cyprus with the NIS2 Directive, following Parliament’s approval of the relevant legislation on April 10, 2025.

€7.67 Million To Strengthen Cybersecurity Capabilities

Cyprus secured €7.67 million through the N4CY2 project to develop its National Cybersecurity Coordination Centre and strengthen the national cybersecurity ecosystem. Co-funded by the EU’s Digital Europe Programme and the Republic of Cyprus, the project is scheduled to run until December 31, 2028.

Other initiatives included the international Cyber Skies 2025 exercise, focused on civil aviation and air transport, and specialist training for the maritime sector. A trilateral agreement between Cyprus, Greece and Israel also established a Cybersecurity Centre of Excellence for Maritime in Cyprus, with operations expected to begin in 2026.

The Authority is also developing an online learning platform with educational materials and interactive exercises, while the ICT Academy was named a finalist in the Cybersecurity Skills category of the European Digital Skills Awards 2025. A national Cybersecurity Career Fair introduced students and the public to opportunities in the sector.

The report highlights a widening gap between the growing frequency of cyber threats and the preparedness of businesses and individuals. Regularly updated security policies, practical training and greater awareness of risk remain essential to protecting Cyprus’ increasingly digital economy.

Cyprus’ economy continues to grow, but its external accounts are coming under increasing pressure. Revised figures show that the current account deficit was significantly wider in 2025 than previously estimated, with a further deterioration in the first half of 2026, according to Eurobank Research.

The latest data also raise the possibility that the 2026 deficit will exceed the IMF’s October forecast, highlighting the challenge of sustaining growth while strengthening the income Cyprus generates abroad.

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Revisions Reveal A Wider Deficit

The Central Bank of Cyprus revised the 2025 current account deficit to 8.8% of GDP, up from 6.4% previously. The 2024 figure, meanwhile, was revised down from 8.2% to 5.5%.

The revised 2025 deficit reached €3.21 billion, €870 million above the earlier estimate. The largest change came from the income balance, where the deficit increased by €1.42 billion, mainly due to net investment income. The goods deficit rose by €201 million and net current transfers abroad by €108 million.

An €855 million upward revision to the services surplus, largely reflecting higher estimated net earnings from ICT services, partly offset the deterioration. Overall, however, the revised figures show that Cyprus’ external position weakened in 2025.

Deficit Widens Further In 2026

The current account deficit reached €2.42 billion in the first half of 2026, equivalent to 12.8% of GDP, compared with 10.1% a year earlier. It widened by €635 million, with almost all of the increase recorded in the second quarter.

The goods trade deficit increased by €441 million, while the services surplus declined by €432 million. Although services exports continued to grow, payments for imported services rose faster.

Several major service sectors contributed to the decline. The ICT surplus fell by €212 million, while the surpluses from travel and financial services dropped by €183 million and €230 million, respectively. Higher net earnings from licensing, royalties and other business services, alongside a €333 million improvement in the income balance, provided some support. A €94 million deterioration in secondary income partly offset those gains.

Imports And Tourism Add To The Pressure

Strong household consumption and business investment have contributed to higher imports. Transport equipment and parts accounted for around 77% of the increase in goods imports during the first half of 2026.

However, imported equipment can also support business expansion and future productive capacity. The longer-term question is whether this investment translates into higher domestic output and income.

Tourism offered less support to the external balance. Revenues fell 6.2% year on year between January and August, reaching €2.32 billion. Receipts increased by 4.6% in July before declining 3.4% in August, mainly due to fewer visitors, while average spending per visitor remained broadly unchanged.

Provisional figures also showed a further year-on-year widening in the goods trade deficit in July and August, pointing to pressure across several sources of external earnings.

IMF Forecast Faces Upside Risk

The IMF’s October 2026 World Economic Outlook projected a current account deficit of 7.7% of GDP for Cyprus in 2026. That forecast was based on information available before the Central Bank’s latest revisions.

Eurobank Research said the updated data create significant upside risk to the projection, meaning the final deficit could be larger than expected.

The scale of the deficit is only part of the picture. International businesses contribute to exports and employment, while profits earned by foreign investors affect the income balance. Household consumption and business investment also generate demand for imported goods and services. How the deficit is financed and whether investment produces future income are therefore equally important.

Strengthening Cyprus’ External Earnings

Eurobank Research argues that Cyprus needs to broaden its sources of income from abroad by helping businesses develop skills, create new products and services, and reach international markets. This would build on the country’s expanding services economy.

Strengthening local supply chains could also allow Cypriot companies to provide more goods and services to international businesses operating on the island. Meanwhile, investment in renewable energy and energy efficiency could reduce dependence on imported fuels.

The report also highlights financial education, household saving and better access to finance for businesses. While these measures will not eliminate external imbalances immediately, stronger export capacity, deeper local supply chains and lower energy-import dependence could gradually narrow the deficit and support more sustainable economic growth.

Cyta is partnering with the Cyprus Productivity Centre (KEPA) to expand access to practical digital skills training for older people across Cyprus. Free programmes planned for 2026 and 2027 will help participants use mobile phones and the internet, with sessions reaching urban, rural and remote communities.

The initiative aims to address a key challenge of digitalisation: having access to technology does not necessarily mean knowing how to use it confidently. Through guided instruction and straightforward learning materials, participants will develop skills they can apply in everyday life.

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Practical Guidance For Everyday Technology

Cyta developed the educational material with the CYENS Centre of Excellence as part of its Digital Inclusion initiative. The step-by-step guides are designed to help people with limited digital experience navigate mobile phones and the internet more easily.

Under the partnership, KEPA will incorporate the material into structured training programmes, providing practical guidance to older people and others less familiar with digital technology.

Part Of A Wider Digital Inclusion Initiative

The collaboration with KEPA is one of three actions under Cyta’s broader Digital Inclusion initiative, which seeks to reduce digital inequalities among different population groups. Other areas of focus include young people, people in remote areas and people with disabilities.

Cyta said the benefits of modern telecommunications networks depend on whether people can use them. Its inclusion efforts aim to help more citizens access technology, benefit from its everyday applications and participate more fully in the digital age.

The training programmes are funded by Cyprus’s Deputy Ministry of Research, Innovation and Digital Policy.

Cyprus is aiming to convert international relationships into partnerships, investment and tangible opportunities for its economy, President Nikos Christodoulides said, announcing the country’s participation in the Plug and Play Silicon Valley Winter Summit.

The delegation will be led by the Deputy Minister of Research, Innovation and Digital Policy, with Cyprus Catalyst also taking an active role. Christodoulides said he plans to return to the United States at the end of November to build on the initiative’s momentum.

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Building on Cyprus’ Silicon Valley Links

Christodoulides said the effort traces back to a meeting in San Francisco last April with Cypriot scientists and entrepreneurs working in technology and innovation. That gathering led to the creation of Cyprus Catalyst, an initiative by Cypriot professionals in the United States designed to connect the country’s business community with the American technology ecosystem.

The initiative aims to develop professional networks, create investment opportunities and support new avenues for growth. The upcoming summit, the president said, will give the effort a more substantial follow-through.

Engaging The Cypriot Diaspora

The government is also seeking to deepen ties with Cypriots abroad through Minds in Cyprus. The initiative is intended to draw on the knowledge and experience of the diaspora while creating meaningful incentives and opportunities for professionals considering a return to Cyprus.

Christodoulides said his visit to the United States later this month will focus on strengthening these connections, deepening partnerships and opening new opportunities for the country.

“From contacts to partnerships. From initiatives to results,” he said, adding that Cyprus is changing.

Industrial turnover in Cyprus increased by 5.6% in August 2026 compared with the same month a year earlier, as stronger domestic sales offset a decline in export turnover, according to data released by the Statistical Service of Cyprus.

Turnover on the domestic market rose 6.7% year over year, while export turnover fell 1.3%. The Industrial Turnover Index stood at 121.4 points in August.

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Domestic Demand Supported Growth In The First Eight Months

From January through August, the index increased 4.1% compared with the corresponding period of 2025. Domestic-market turnover was up 4.9% over the eight-month period, while export turnover edged down 0.7%.

Mining And Quarrying Recorded The Fastest Growth

Mining and quarrying posted the largest annual increase in turnover among industrial sectors in August, rising 12.5%. Electricity supply followed with growth of 10.2%, while water supply and materials recovery increased 10.1%.

Manufacturing turnover reached 109 points, up 3.7% from a year earlier. Within the sector, the manufacture of computer, electronic and optical products, along with electrical equipment, recorded a sharp 72.3% increase.

Turnover also rose 38.3% in the manufacture of wood and cork products and 27% in the manufacture of rubber and plastic products.

Some Manufacturing Categories Saw Declines

Not all industrial activities shared in the gains. Turnover fell 12.8% in the category covering machinery and equipment, motor vehicles and other transport equipment. The production of textiles, wearing apparel and leather goods recorded a 4.9% decline.

Cyprus risks losing investment unless it reduces bureaucracy and creates a more predictable regulatory environment, U.S. Ambassador John Breslow warned on Friday, saying the country cannot afford to let business opportunities go unrealised.

Speaking at the first annual conference of the American Chamber of Commerce in Cyprus, Breslow said even the departure of a single U.S. company would represent an unnecessary setback.

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“Even one company that leaves is one more than it should be.”

Investors Need Predictability

Breslow urged Washington and Nicosia to work together to remove barriers to investment, stressing that major, long-term commitments depend on stable and predictable rules.

“Companies need certainty to make large, long-term investments. This is one of my highest priorities.”

He welcomed Cyprus’ intention to tackle European bureaucracy during its presidency of the Council of the European Union, arguing that efforts to remove rules that undermine prosperity in both countries should continue.

As an example of the cooperation needed, Breslow pointed to a recent U.S.–Greece agreement on critical minerals and secure supply chains. He also welcomed Cyprus’ investment-screening legislation, while calling for similar scrutiny to be extended to public procurement.

Positioning Cyprus As A U.S. Business Hub

The ambassador described Cyprus as a potential base for American companies operating across Europe, saying the bilateral partnership makes both countries “more secure, stronger and more prosperous”.

President Nikos Christodoulides is expected to visit the United States at the end of the month to promote Cyprus as an investment destination at a Silicon Valley technology summit. The visit forms part of broader efforts to strengthen commercial and technology ties.

Security cooperation is another pillar of the relationship. The two countries signed a five-year defence cooperation roadmap in 2024, while U.S. warships have made more than 100 calls at Cypriot ports since 2022.

Cyprus has also signed its first foreign military sales agreement with the United States. Breslow said the deal would support the expansion of Paphos air base for American and Cypriot forces. He added that Cyprus had sent its 100th military student to the United States for training.

“Security enables investment, and every defence agreement between friends creates jobs and stronger partners on both sides of the Atlantic.”

Energy And Regional Connectivity

Breslow said Cyprus is working with ExxonMobil, Chevron, Halliburton, Baker Hughes and McDermott on regional interconnections.

“Energy security is national security.”

He also highlighted undersea electricity and data cables, as well as the India–Middle East–Europe Economic Corridor, describing Cyprus as centrally positioned in the region’s developing infrastructure network.

The ambassador pointed to the United States–Cyprus–Greece–Israel “3+1” grouping as another area with significant potential. He also cited the Eastern Mediterranean Energy Centre, launched at Rice University in Houston in June, and the U.S.-funded Cyclops regional training centre in Larnaca, which provides border-security training to officials from dozens of countries.

Building The Next Generation Of Business Links

Breslow called for more opportunities for young Cypriots to study and work at American companies, linking talent development to Cyprus’ ability to attract and retain investment.

He concluded by rejecting the suggestion that “the days of the West are over”, arguing that stronger commercial, energy and security ties can deliver lasting benefits on both sides of the Atlantic.

Cyprus recorded an average annual full-time adjusted salary of €29,547 in 2025, up 5% year on year but still below the EU average of €41,464, according to Eurostat.

The figure represents around 71% of the EU average, leaving an annual gap of €11,917. Although salaries in Cyprus have grown faster than the EU average in recent years, the country continues to trail Spain, Italy and Malta, while remaining ahead of Greece and Portugal.

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Cyprus Salaries Are Growing Faster Than The EU Average

Cyprus’ average annual adjusted salary increased from €24,203 in 2022 to €29,547 in 2025, a rise of approximately 22.1%. Over the same period, the EU average grew by 16.2%, from €35,671 to €41,464.

In 2025, salaries rose by 5% in Cyprus, compared with 4.3% across the EU. This faster growth is gradually narrowing the gap, although average earnings on the island remain significantly below the European benchmark.

Cyprus also outperformed several central and eastern European countries, including Poland (€23,853), Romania (€20,818), Hungary (€20,138) and Bulgaria (€16,201). Greece recorded the EU’s second-lowest average, at €18,772.

How Cyprus Compares With Mediterranean Economies

Several southern European countries recorded higher salaries than Cyprus in 2025. Spain led the group at €35,125, followed by Malta at €35,003 and Italy at €34,213. Cyprus’ average was therefore between €4,666 and €5,578 lower.

By contrast, Cyprus was €3,345 ahead of Portugal (€26,202) and €10,775 above Greece. The figures show that while the country has moved ahead of some EU members, it still lags behind several Mediterranean peers.

Luxembourg And Denmark Top The European Rankings

Luxembourg recorded the EU’s highest average annual adjusted salary in 2025, at €85,609. Denmark followed with €73,500 and Ireland with €64,387. Belgium (€61,984), Austria (€60,727) and Germany (€56,360) also ranked among the highest-paying countries.

At the lower end, Bulgaria recorded the lowest average at €16,201, followed by Greece (€18,772) and Hungary (€20,138). Luxembourg’s figure was almost three times the Cyprus average, highlighting the substantial earnings differences across the EU.

Domestic Earnings Data Reveal A Wider Pay Divide

Separate figures from the Cyprus Statistical Service (Cystat) provide a closer look at the domestic labour market. Provisional estimates put average gross monthly earnings at €2,548 in the second quarter of 2026, up 3% from €2,475 a year earlier.

However, the average masks a wide income distribution. Some 33.6% of employees earned less than €1,500 a month, while 41.4% received between €1,500 and €2,999. Only 5.6% earned €6,000 or more.

Median earnings offer a clearer indication of what a typical employee receives, as high salaries can push up the average. Cystat’s 2025 figures put median gross monthly earnings at €1,953, compared with an average of €2,591, meaning half of employees earned less than the median.

Gender And Nationality Gaps Persist

The second-quarter figures also show a gender pay difference. Men earned an average of €2,708 a month, compared with €2,345 for women, a gap of €363. However, women’s average earnings increased by 4.1% year on year, outpacing the 2.1% rise among men.

Nationality also shaped the earnings distribution. Among Cypriot employees, 45.5% earned between €1,500 and €2,999 a month. Non-Cypriot employees were more concentrated in the lowest income bracket, with 46.3% earning less than €1,500.

Taken together, the Eurostat and Cystat figures show a mixed picture. Cyprus’ annual adjusted salaries are growing faster than the EU average, and the country remains ahead of Greece and Portugal. Yet it continues to trail several Mediterranean economies, while a substantial share of employees in the domestic labour market earn less than €1,500 a month.

Cyprus and Vietnam are looking to strengthen economic ties, with shipping, technology, renewable energy and professional services identified as potential areas for cooperation.

The opportunities were discussed at the Cyprus–Vietnam Two-Way Trade and Investment Forum, held at the Cyprus Chamber of Commerce and Industry in Nicosia. Government officials, diplomats, business representatives and research institutions explored ways to expand trade, investment and technological partnerships.

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Complementary Economies Create Opportunities

Opening the forum, Keve Deputy Secretary General Emilios Michael highlighted Vietnam’s rapid development and growing role in international supply chains, alongside Cyprus’ position as a business hub providing access to the European market.

He also encouraged companies to make greater use of the EU–Vietnam Free Trade Agreement and turn its framework into concrete commercial opportunities.

Cyprus Minister of Energy, Commerce and Industry Michael Damianos emphasised the potential for stronger trade and investment links with Asian markets, while Vietnam’s Ambassador to Cyprus, Nguyen Phuong Anh, outlined opportunities arising from closer relations between Vietnam and the EU.

Connecting Businesses And Research Institutions

Invest Cyprus Chief Executive Marios Tannousis presented Cyprus’ investment environment and its access to the EU Single Market. Duong Phuong Thao, Counsellor at the Vietnam Trade Office in Italy, outlined opportunities for Cypriot companies to enter the Vietnamese market and establish partnerships.

Research and innovation were also central to the discussions. Andreas Andreou of the Eratosthenes Centre of Excellence presented opportunities to commercialise scientific research through industry partnerships, while CYENS Centre of Excellence General Director Yiorgos Chrysanthou outlined potential cooperation in research, digital technologies and innovation.

Tourism, higher education, professional services and renewable energy were also identified as sectors offering scope for joint projects and investment.

Turning Dialogue Into Long-Term Partnerships

Keve reaffirmed its commitment to supporting the international expansion of Cypriot businesses and facilitating partnerships between the two countries.

The forum aimed to connect business communities and identify practical opportunities for cooperation. Turning these discussions into sustained commercial relationships and investment will be the next step in strengthening bilateral economic ties.

Cyprus recorded the European Union’s strongest annual growth in retail trade in September 2026, with sales volumes up 7.6% from a year earlier. The result stood out as retail activity declined month on month across both the euro area and the EU, according to Eurostat.

Retail volumes increased by 0.4% year on year in the euro area and 0.9% across the EU. Cyprus led the member states, ahead of Sweden at 6.9% and Bulgaria at 5.7%. The weakest annual results were recorded in Germany, where volumes fell 2.4%, Romania, down 2.3%, and Spain, down 1.5%.

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Monthly Sales Weaken Across Europe

Compared with August, retail trade volumes fell by 0.7% in the euro area and 0.6% across the EU in September. Both had risen by 0.4% in the previous month.

Germany posted the steepest monthly decline, at 2%, followed by Romania at 1.3% and Portugal at 0.9%. In contrast, volumes rose 5.3% in Luxembourg, 2.2% in Slovakia and 1.5% in Malta.

Cyprus recorded a 0.7% monthly increase, following a 0.1% rise in August. The country’s monthly figures have varied over the year: retail volumes fell 0.9% in April, rebounded 3.7% in May, then declined 0.8% in June. Growth returned in July, when volumes rose 2%, followed by more modest increases in August and September.

Cyprus Maintains Strong Annual Growth

The annual trend in Cyprus has remained robust despite fluctuations in monthly activity. Retail volumes rose 2.7% in April compared with the same month in 2025, then accelerated to 8.4% in May. Growth eased to 5% in June and reached 8.6% in July, before settling at 7.5% in August and 7.6% in September.

The contrast between the annual and monthly figures underscores the importance of separating short-term shifts from longer-term performance. A monthly decline can reflect a change in momentum, while annual comparisons show how sales volumes stand against the same period a year earlier.

Product Categories Show Different Trends

In the euro area, September’s monthly decline reflected lower sales of food, drinks and tobacco, down 0.3%, and non-food products excluding automotive fuel, down 1.2%. Automotive fuel sales at specialised stores increased by 1%.

Across the EU, food, drinks and tobacco volumes fell 0.4%, while non-food sales excluding automotive fuel declined 1%. Automotive fuel sales rose 0.1%.

On an annual basis, food, drinks and tobacco volumes increased by 1.1% in the euro area and 1% in the EU. Non-food retail sales excluding automotive fuel rose 0.7% and 1.2%, respectively. Automotive fuel sales moved in the opposite direction, falling 3% in the euro area and 2.3% across the EU compared with September 2025.

Eurostat’s figures are first estimates and measure retail trade volumes adjusted for price changes, providing an indication of the quantity of goods sold rather than changes in prices.