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Cyprus Industrial Production Index Sees Robust Surge In November 2025

Data released by the Cyprus Statistical Service confirms a notable lift in industrial activity. In November 2025, the Cyprus Industrial Production Index reached 111.2 units—a striking 8.5% increase from the same month in the previous year—underscoring a dynamic rebound in the nation’s economy.

Overview Of Growth Trends

The index, anchored to the 2021 base year (set at 100 units), has driven an overall annual uptick of 3.7% for the period spanning January 1 to November 30, 2025, compared to 2024. Such a trend is reflective of broader recovery measures and sustained confidence in core industrial sectors.

Manufacturing Sector Drives Expansion

At the forefront of this progress is the manufacturing sector, which reported a robust 9.6% rise relative to November 2024. Notably, the production of other non-metallic mineral products surged dramatically by 83.6%, and combined advancements in furniture manufacturing, machinery repair, and installation contributed a 10.3% increase. Additionally, wood processing and basic metals manufacturing displayed strong gains of 9.3% and 8.9% respectively, further solidifying industrial resilience.

Sectoral Analysis And Key Contributors

In parallel, the mining and quarrying segment experienced a steep climb of 32.5%, while the water supply and materials recovery sector posted a 4.7% increase. However, not all areas shared this upward momentum; the electricity supply sector registered a modest decline of 0.9% in November, highlighting sector-specific challenges even amidst an overall positive industrial landscape.

Year-To-Date Trends And Future Outlook

From January through November 2025, the manufacturing segment—particularly the production of non-metallic mineral products—remained the standout, with an impressive annual increase of 13.3%. Other significant year-to-date contributors include basic metals and fabricated metal products at 8.7% and wood and cork products at 8.6%. Conversely, the manufacturing of paper products fell by 10.3%, and the textiles, wearing apparel, and leather products sector declined by 5.4%, with the electricity supply industry dropping by 1.8% compared to the previous year.

This comprehensive data underscores the vital role that diversified industrial activities play in shaping Cyprus’s economic landscape. As these sectors continue to evolve, the measured shifts in production not only serve as a barometer for current performance but also offer key insights for strategic decision-making in a globally competitive market.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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