Macro-Economic Overview
The Statistical Service of Cyprus (Cystat) released its first estimate for 2025, showing that the country’s Gross Domestic Product increased by 3.8% in real terms and 4.5% at current prices. In real terms, GDP reached €30.52 billion, reflecting continued economic expansion compared with 2024. Nominal GDP rose to €36.32 billion, indicating higher overall economic activity during the year.
Diverse Sectoral Contributions
According to the production approach, growth was mainly supported by several key sectors of the economy. These included Information and Communications, Hotels and Restaurants, Construction, and Wholesale and Retail Trade, including motor vehicle repairs. The performance of these sectors contributed to the overall increase in economic output during 2025.
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Consumption, Investment, And Trade Dynamics
Data based on the expenditure approach show that public consumption increased by 6.7%, reaching €6.82 billion. Private consumption rose by 3.7% to €20.65 billion. Gross fixed capital formation grew by 2.3%, reaching €7.35 billion, reflecting continued investment activity. Exports increased by 5.3% to €35.52 billion, while imports rose by 4.9% to €34.04 billion. The increase in imports moderated the overall contribution of external trade to GDP growth.
Quarterly Insights: Strong Fourth Quarter Performance
Separate data from Cystat indicate that seasonally adjusted real GDP grew by 4.5% in the fourth quarter of 2025 compared with the same period in 2024, reaching €7.76 billion. Quarterly, GDP increased by 1.4% compared with the third quarter of the year. Growth during the period was mainly recorded in Wholesale and Retail Trade, Information and Communications, and Hotels and Restaurants. The figures confirm continued economic expansion across several sectors of the Cypriot economy during the final quarter of 2025.
