Cyprus Economic Climate Improves in October 2025, Driven by Service And Construction Momentum

by THEFUTURE.TEAM

November 3, 2025

Overview Of Improved Economic Sentiment

According to findings from the Centre for Economic Research, Cyprus experienced a notable enhancement in its economic climate in October 2025. The Economic Sentiment Indicator registered an increase of 2 points compared to September, reflecting strengthened business confidence primarily driven by improvements in the service and construction sectors.

Boost In Services And Construction Sectors

The services sector recorded positive shifts as business leaders maintained optimistic expectations for both recent and forthcoming months. In parallel, the construction industry benefited from favorable assessments of ongoing projects and promising employment prospects, contributing significantly to stronger economic sentiment.

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Challenges In Retail And Manufacturing

Contrarily, the retail sector faced a downturn marked by reduced sales and increased inventories, with businesses forecasting softer sales figures in the upcoming quarter. Similarly, the manufacturing sector showed signs of deceleration as current orders received less favorable evaluations and production forecasts for the coming months were adjusted downward.

Consumer Caution And Recalibrated Expectations

Adding to the mixed economic picture, consumer sentiment declined in October. Households reassessed their financial outlooks with increased caution, leading to a pullback from significant purchases and a tempered forecast for the country’s economic trajectory.

Lower Levels Of Economic Uncertainty

Further supporting the overall improvement, the Economic Uncertainty Index registered a decline, indicative of diminished business uncertainty across nearly all sectors. Although the manufacturing domain experienced a slight uptick in uncertainty, consumer apprehension remained marginal and well-contained across various income groups.

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EU Moderates Emissions While Sustaining Economic Momentum

by THEFUTURE.TEAM

November 15, 2025

The European Union witnessed a modest decline in greenhouse gas emissions in the second quarter of 2025, as reported by Eurostat. Emissions across the EU registered at 772 million tonnes of CO₂-equivalents, marking a 0.4 percent reduction from 775 million tonnes in the same period of 2024. Concurrently, the EU’s gross domestic product rose by 1.3 percent, reinforcing the ongoing decoupling between economic growth and environmental impact.

Sector-By-Sector Performance

Within the broader statistics on emissions by economic activity, the energy sector—specifically electricity, gas, steam, and air conditioning supply—experienced the most significant drop, declining by 2.9 percent. In comparison, the manufacturing sector and transportation and storage both achieved a 0.4 percent reduction. However, household emissions bucked the trend, increasing by 1.0 percent over the same period.

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National Highlights And Notable Exceptions

Among EU member states, 12 reported a reduction in emissions, while 14 saw increases, and Estonia’s figures remained static. Notably, Slovenia, the Netherlands, and Finland recorded the most pronounced declines at 8.6 percent, 5.9 percent, and 4.2 percent respectively. Of the 12 countries reducing emissions, three—Finland, Germany, and Luxembourg—also experienced a contraction in GDP growth.

Dual Achievement: Environmental And Economic Goals

In an encouraging development, nine member states, including Cyprus, managed to lower their emissions while maintaining economic expansion. This dual achievement—reducing environmental impact while fostering economic activity—is a trend that has increasingly influenced EU climate policies. Other nations that successfully balanced these outcomes include Austria, Denmark, France, Italy, the Netherlands, Romania, Slovenia, and Sweden.

Conclusion

As the EU continues to navigate its climate commitments, these quarterly insights underscore a gradual yet significant shift toward balancing emissions reductions with robust economic growth. The evolving landscape highlights the critical need for sustainable strategies that not only mitigate environmental risks but also invigorate economic resilience.

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