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Cyprus Industrial Turnover Index Highlights Varied Sectoral Trends In 2025

by THEFUTURE.TEAM

November 6, 2025

The Cyprus Industrial Turnover Index for August 2025 stood at 115.2 units, reflecting a 3.4% dip from the same month in 2024. The data, released by the Cyprus Statistical Service (Cystat), paints a nuanced picture of the country’s industrial performance over the past year.

Industrial Turnover Trend Overview

Between January and August 2025, the overall index exhibited a 4% rise compared to the corresponding period in 2024. This increase underscores a broader, albeit uneven, recovery in industrial activity despite the monthly setback observed in August.

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Sector-Specific Performance

The manufacturing sector, registering an index of 105.0 units, recorded a modest annual uptick of 1.2%. Noteworthy gains were observed in the manufacture of wood and cork products, which surged by 18.4%, and in machinery, motor vehicles, and other transport equipment, up by 13.3%. Additionally, the production of refined petroleum, chemical, and pharmaceutical products climbed by 6%, while basic metals and fabricated metal products marked a 3.5% increment.

Conversely, the textile, apparel and leather industries experienced a significant contraction of 18%, and electronic, optical products, and electrical equipment fell by 13.4%. Further declines were seen in paper, printing and related products (down 9.7%) as well as in furniture and other manufacturing (down 9.4%).

Market Segmentation Analysis

Examining market segments reveals divergent trends. Local market turnover dropped by 4.2%, while the export market enjoyed a modest 1.9% increase relative to August 2024. Sectoral performance was similarly mixed in non-manufacturing segments. For instance, mining and quarrying increased by 2.1% in August, with an impressive 11.8% surge over the January to August period. In contrast, electricity supply declined by 15.7% in August and 9.2% over the longer term, while water supply and materials recovery saw decreases of 1.3% and 1.4%, respectively.

Methodological Considerations

The index methodology, with 2021 as the base year, is designed to capture monthly fluctuations in turnover relative to that benchmark year. In essence, a monthly index figure of 112.4 indicates a 12.4% rise in turnover compared to the 2021 average. Data gathering methods include telephone and email surveys conducted five to ten days after the close of each period, with comprehensive data typically finalized within two months. The index fully covers larger enterprises with turnovers exceeding €2 million or those employing 20 or more persons, while smaller enterprises are sampled.

This detailed assessment of industrial activity by Cystat provides critical insights for stakeholders navigating Cyprus’s dynamic industrial landscape in 2025.

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Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.