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Cyprus Industrial Production Advances Amid Diversified Sector Growth In 2025

by THEFUTURE.TEAM

February 26, 2026

Cyprus’ Industrial Production Index rose to 113.0 points in December 2025, marking a 3.5% increase compared with the same month a year earlier, according to data from the Cyprus Statistical Service. The figures suggest continued industrial momentum as the country’s production base expands across several manufacturing segments.

Overview Of Economic Momentum

Based on the 2021 reference value of 100 points, industrial output maintained an upward trend throughout 2025. For the full year, production increased by 3.6%, reflecting steady growth supported by manufacturing activity and ongoing industrial investment.

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Sector Analysis: Winners And Losers

Manufacturing remained the main driver of growth, expanding by 4.6% in December. Water supply and materials recovery also contributed, rising by 3.2%.

Other sectors showed weaker performance. Electricity supply declined by 2.4% compared with December 2024, while mining and quarrying fell by 1.7%, highlighting uneven performance across the industrial landscape.

In-Depth Manufacturing Performance

Within manufacturing, furniture production and related activities, including machinery repair and installation, recorded one of the strongest gains, rising 13.8% year over year.

Wood and cork products, excluding furniture, increased by 11.9%, while machinery, motor vehicles, and transport equipment production rose by 8.1%.

Annual Trends And Segment Challenges

For the full year, the manufacture of other non-metallic mineral products posted the strongest growth, rising 10.9% compared with 2024. Wood and cork products grew by 9.1%, while basic metals and fabricated metal products increased by 8%.

Furniture-related activities expanded by 7.2%. At the same time, paper products and printing declined by 9.5%, while textiles, apparel, and leather products fell by 3.8%. Electricity supply recorded a full-year decline of 2%, underscoring differences in sector performance.

Outlook

The latest data points to continued growth in Cyprus’ industrial sector, led primarily by manufacturing. At the same time, weaker performance in energy and selected manufacturing segments highlights areas where productivity and investment strategies may shape future industrial performance.

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Cyprus Introduces €200 Million Support Measures To Cut Energy And Food Costs

by THEFUTURE.TEAM

March 27, 2026

Comprehensive Relief Measures For A Resilient Economy

The government of Cyprus introduced support measures exceeding €200 million to reduce household expenses and support key sectors. The package targets energy costs, food prices, tourism and agriculture. Measures come in response to rising costs and supply pressures. Implementation begins in April and May 2026.

Energy And Fiscal Reforms

The government will reduce VAT on electricity for households to 5% from May 1, 2026, to March 31, 2027. The measure is expected to lower energy bills. Special consumption tax on transport fuels will decrease by 8.33 cents per liter between April and June 2026. Policy targets fuel-related costs.

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Broadening The Zero VAT Initiative

Authorities will expand the list of products with zero VAT. Meat, poultry and fish will be included from April 1 to September 30, 2026. Existing zero-VAT categories already include fruits and vegetables. The government also decided not to introduce a green tax on fuels, avoiding an additional cost of about 9 cents per liter.

Sector-Specific Supports

The package includes a 30% wage subsidy for hotel employees for April 2026. Measure supports tourism businesses during the early season. Support for airlines aims to maintain connectivity with key destinations. The agriculture sector will receive subsidies covering 15% of costs for fertilizers and supplies in April and May.

Economic Stability, National Security

President Nikos Christodoulidis said economic stability remains a priority for the government. He noted that growth, fiscal balance and inflation trends support current policy decisions. Statement links economic policy with broader national priorities. The government continues to monitor external risks.

Ensuring Consumer Protection

Furthermore, the government has mandated rigorous market oversight and intensified inspections to prevent exploitative pricing during this period of economic intervention. This proactive stance ensures that the benefits of the measures directly serve the citizens without unintended inflationary impacts.