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Cyprus Industrial Production Accelerates In September 2025, Eurostat Reports

Cyprus has demonstrated robust industrial growth in September 2025, as preliminary estimates from Eurostat reveal a notable 1.0 percent month-on-month increase. This surge in production comes as Cyprus’ manufacturing sector outperformed broader recovery trends observed within both the Euro area and the European Union.

Manufacturing Momentum Amid Economic Shifts

Following a period of stability in August 2025, Cyprus’ industrial output surged, reversing months of modest performance. The data, collected over the past six months, indicates a generally positive trajectory for the country’s industrial activity, with a minor dip in May 2025 offset by consistent growth in subsequent months.

Comparative Analysis Across The Eurozone And EU

In contrast, the wider Euro area experienced only a 0.2 percent increase in industrial production in September, a rebound from a 1.1 percent decline in the previous month. Across the European Union, the recovery was more pronounced with a 0.8 percent rise. Year-over-year comparisons further emphasize these trends, registering increases of 1.2 percent in the Euro area and 2.0 percent in the EU.

Sectoral Dynamics And National Variations

Disaggregated data highlights that production of intermediate goods, energy, and capital goods recorded modest increases, while production in durable and non-durable consumer goods lagged behind, with declines noted in both categories. Notably, intermediate goods rose by 0.3 percent, energy by 1.2 percent, and capital goods by 0.3 percent, while durable consumer goods fell by 0.5 percent and non-durable consumer goods by 2.6 percent in the Euro area. Similar sectoral patterns were evident across the broader EU.

Leading Economies And Notable Declines

Among EU member states, Denmark (+7.2 percent), Sweden (+5.3 percent), and Greece (+4.8 percent) emerged as the frontrunners in monthly industrial production growth. Conversely, Ireland (-9.4 percent), Luxembourg (-5.7 percent), and Malta (-1.7 percent) experienced significant declines. On an annual basis, Sweden led with an impressive 14.7 percent increase, followed by Denmark at 9.5 percent and Greece at 7.1 percent, while Bulgaria, Luxembourg, and Lithuania registered the steepest year-over-year downtrends.

The comprehensive statistics underscore a dynamic industrial landscape across Europe, where resilience in certain sectors and regions contrasts with challenges elsewhere. For deeper insights into these evolving trends, Eurostat’s detailed reports remain an essential resource for policymakers and industry leaders alike.

Nearly 80% Of Cyprus’ Foreign Investment Came From Outside EU In 2025

Cyprus had the highest share of foreign direct investment (FDI) originating outside the European Union among 14 EU member states reporting data for 2025. According to Eurostat, non-EU economies accounted for 79.4% of the island’s inward FDI, highlighting its distinct position among the reporting countries.

The figures contrast with most other EU economies, where investment from within the bloc remains the main source of foreign capital.

Cyprus Leads In Non-EU Investment Share

Eurostat measures inward FDI positions by the ultimate investing economy, identifying the economy where the investment ultimately originates rather than only the country through which it is channelled. This distinction is important when investments involve subsidiaries or intermediary holding companies.

In nine of the 14 reporting countries, most foreign investment came from within the EU. The Czech Republic recorded the highest intra-EU share, at 75.1%, followed by Romania at 73.3% and Estonia at 64.8%.

Cyprus was among five countries where non-EU economies accounted for more than half of inward FDI. Spain, Sweden, Greece and Denmark also recorded shares above 50%, ranging from 51% to 55.1%.

US Is The Largest Source Of FDI Across Reporting Countries

Across the 14 countries collectively, the United States was the largest ultimate source of foreign direct investment, accounting for 15.4% of the total.

Germany ranked second at 11.5%, followed by France at 9.4%, the United Kingdom at 9.3% and Switzerland at 5.8%.

These figures reflect the combined investment positions of the reporting countries and do not identify Cyprus’s leading individual investment sources. However, the country-level data underline the island’s strong reliance on capital originating outside the European Union.

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