Cyprus Beer Industry Sees Domestic Downturn and Export Surge in May 2025

Domestic Consumption Contracts

New data from the Cyprus Statistical Service (Cystat) reveals a 4% overall decline in beer factory sales in May 2025 compared to the same month last year. Domestic consumption notably fell by 8%, declining from 4,475,044 litres in May 2024 to 4,115,967 litres in May 2025.

Export Performance Drives Growth

Despite a drop in local demand, beer exports experienced a significant increase, surging by 83.9% to 381,641 litres from 207,531 litres recorded a year earlier. This robust uplift underscores emerging opportunities in international markets even as domestic sales wane.

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Monthly and Seasonal Trends

Total monthly deliveries in May 2025 were 4,497,608 litres, compared to 4,682,575 litres during the same period in 2024. Furthermore, an analysis of the first five months of 2025 shows that combined domestic and export sales fell by 2.4%—a reduction of 378,619 litres—totaling 15,422,120 litres versus 15,800,739 litres in the corresponding period of 2024.

Examining the Broader Impact

When segmented by category, domestic consumption from January to May decreased sharply by 16.1%, while export volumes almost doubled, recording an impressive 96.9% growth. Exports reached 112,983 litres in the early months of the year, up from 57,466 litres, illustrating how external markets are compensating for weakened domestic performance.

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DBRS Warns Of Middle East Risks For Greek And Cypriot Banks’ Key Sector

by THEFUTURE.TEAM

April 1, 2026

Rising Geopolitical Risks And Economic Vulnerabilities

DBRS said rising geopolitical tensions in the Middle East increase risks for Greece and Cyprus, citing their exposure to shipping and tourism. The assessment highlights sector dependence as a key vulnerability in both economies.

Impact On Economic Activity And Banking Systems

Despite recent resilience in Cyprus, ongoing volatility is affecting economic activity and the banking sector. The report, titled “Middle East Tensions Heighten Risks for Greek and Cypriot Banks’ Shipping and Tourism Exposures,” compares risks across both countries and identifies areas of exposure.

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Tourism And Shipping: The Economic Double-Edged Sword

Tourism and shipping account for a larger share of economic activity in Cyprus and Greece than in most EU countries. In Cyprus, these sectors represent 6.6% of gross value added, compared with 7.3% in Greece and an EU average of 2.9%. Beyond direct activity, tourism supports transport and leisure services, influencing consumption and broader economic output. According to DBRS, banks in both countries have above-average exposure to these sectors, increasing credit risk in the event of a prolonged downturn.

Differentiated Exposure: Cyprus Versus Greece

Exposure differs between the two banking systems. Greek banks hold a larger share of internationally secured shipping loans, while Cypriot banks have greater exposure to tourism-related activity. This makes Cyprus more sensitive to changes in travel demand. Both systems maintain profitability and capital buffers that may support performance under pressure.

Economic Ripple Effects And Sectoral Vulnerabilities

A decline in tourism flows would affect small and medium-sized businesses, household income, and real estate values. These factors are linked to asset quality in Cypriot banks. Early indicators point to higher cancellation rates and weaker travel demand in Cyprus, reflecting its proximity to regional tensions. Greece may see a more limited short-term impact due to lower exposure and potential diversion of tourism demand from affected regions.

Maintaining Profitability In A Challenging Environment

Bank profitability in both countries remained above the EU average as of the fourth quarter of 2025. Capital levels in Cypriot banks remain strong, while Greek banks continue to align with broader European benchmarks. Asset quality has improved, with non-performing loan ratios in transportation and storage close to 0% in 2025, compared with an EU average of 2.3%. In lodging and food services, non-performing loans stood at 2.1% in Greece and 0.7% in Cyprus, both below the EU average of 5%.

Sectoral Exposure And Wider Banking Implications

Data from the European Banking Authority show that transportation and storage accounted for 19.8% of loans to non-financial corporations in Greece and 11.2% in Cyprus in 2025, compared with an EU average of 5.5%. Exposure to lodging and food services reached 11.1% in Greece and 21.2% in Cyprus, exceeding the EU average of 2.6%.

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