Cyprus Industrial Production Index Advances Amid Sectoral Variations

by THEFUTURE.TEAM

September 30, 2025

Overview Of Industrial Growth

The latest data from Cyprus’s statistical service shows that the Industrial Production Index reached 125.8 units in July 2025, using 2021 as the base year at 100 units. This figure represents a 1.8 percent increase compared to July 2024, signaling a measured yet steady industrial uptick.

Robust Performance In Manufacturing And Utilities

Significant progress was observed in the manufacturing sector, which grew by 3.7 percent relative to the previous year. In parallel, improvements in water supply and materials recovery were particularly notable, with a 7.6 percent increase. These developments highlight the resilience of core industrial segments amid a fluctuating economic landscape.

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Differential Sectoral Outcomes

However, not all sectors shared in this growth. The electricity supply segment experienced an 8.0 percent decline, and the mining and quarrying industries contracted by 1.8 percent. Within manufacturing, there were marked disparities: basic metals and fabricated metal products surged by 10.5 percent, while rubber and plastic products climbed 9.2 percent. In contrast, the paper and printing sectors saw the steepest falls, with declines of 11.9 percent, complemented by a 9.8 percent drop in textiles, wearing apparel, and leather products.

Mid-Year Trends And Broader Implications

From January to July 2025, the overall index recorded a 3.0 percent annual growth. Within this period, water collection, treatment, and supply led the gains with a 9.0 percent increase, followed by other non-metallic mineral products (up 8.7 percent), wood products (up 7.6 percent), and rubber and plastic products (up 7.0 percent). Conversely, paper production and printing fell by 13.6 percent, with textiles and electrical supply also showing declines.

Methodological Context

The Industrial Production Index is pegged to the 2021 base year. For instance, an index reading of 103.4 indicates a 3.4 percent increase over the average monthly production of 2021. This framework offers a clear metric for assessing month-over-month changes in industrial output.

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Cyprus Government’s Economic Policy: A Blueprint for Growth and Stability

by THEFUTURE.TEAM

October 1, 2025

Strong Budgetary Outlook for 2026

The President of the Republic, Nikos Christodoulidis, announced positive outcomes from the government’s policy initiatives during an afternoon session of the Cabinet Council held at the Presidential Mansion. The focal point of the meeting was the 2026 state budget, heralded as a symbol of economic strength and forward-looking development.

A Robust and Surplus Budget

At the outset, President Christodoulidis highlighted the importance of maintaining a dynamic economy—a priority among the government’s top five strategic objectives. The newly presented budget is not only surplus but also grounded in stability, offering a blend of social and developmental mandates. This financial blueprint underscores the government’s unwavering commitment to strategic investments and sustainable growth.

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Enhanced Social and Developmental Investments

Significant increases are planned in both developmental spending and social policy allocations. Notably, developmental expenditures are set to rise by 4.7% in addition to the 4% increase recorded in the 2025 budget. Social services, which saw a 5.3% boost in the previous year, are slated for a further 6.7% increase. Such measures are indicative of a policy designed to balance fiscal discipline with impactful public spending.

Reduction in Public Debt

One of the key highlights of the session was the projected decline in public debt. The debt-to-GDP ratio is expected to decrease from 73.6% in 2023, when the current administration assumed office, to 52.9% by 2026—placing Cyprus among the low-debt economies within the Eurozone. This significant reduction demonstrates prudent fiscal management and augurs well for long-term economic stability.

Strategic Focus on Education, Health, and Transformation

President Christodoulidis reiterated the government’s prioritization of sectors critical to national development. Investments in education, healthcare, and social welfare are being bolstered alongside initiatives for digital transformation and the green transition. Projections for 2026 include a growth rate of 3.1% and an unemployment rate maintained below 5%, approximately at 4.6%. Such targets reflect a resilient and balanced approach in the face of global uncertainties.

A Commitment to Responsible Governance

Drawing comparisons with economic conditions in major Eurozone countries and acknowledging Cyprus’s unique geopolitical challenges, the President emphasized that these results are a testament to responsible economic policy. The administration’s clear mandate remains: to act in the best interests of the Cypriot people, ensuring that responsible governance prevails without resorting to experimentation.

Looking Ahead

Concluding the address, President Christodoulidis affirmed that the government would persist in delivering results with the same sense of accountability. The approved 2026 budget marks the third fiscal plan under the current administration, underscoring a consistent commitment to transparency, fiscal prudence, and strategic development.

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