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Cyprus Outperforms EU Retail Growth With Record Annual Increase In December 2025

by THEFUTURE.TEAM

February 10, 2026

Overview

In a striking development for the European retail sector, Cyprus recorded an 8.2% year-on-year increase in retail trade volume in December 2025, registering the strongest annual growth among EU member states. This performance sets Cyprus apart from its peers, including Bulgaria and Luxembourg.

EU Retail Trade Performance

While Cyprus experienced robust gains, the broader euro area saw a modest 0.5% decline in retail trade volume in December 2025 compared to November. Similarly, the overall EU figures indicated a 0.5% drop month-on-month, despite previous increases in November. The calendar-adjusted retail sales index, however, managed to edge upwards by 1.3% in the euro area and by 1.7% across the EU on an annual basis.

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Category Trends

Disaggregated data revealed mixed trends across retail categories. In the euro area, retail volumes for food, drinks, and tobacco experienced a slight monthly increase of 0.1%, while non-food product sales (excluding automotive fuel) dropped by 1.2%. Automotive fuel sales at specialized outlets remained stable. Conversely, within the EU, food, drinks, and tobacco sales recorded a minor downturn of 0.1%, and non-food products fell by 0.9% month-on-month, although automotive fuel sales enjoyed a modest rise of 0.1%.

Annual Performance by Sector

On an annual scale, the euro area saw a 1.2% increase in food, drinks, and tobacco sales, along with a 1.6% upsurge in non-food items. Automotive fuel sales in specialized stores in the euro area increased by 0.9% year-on-year. Across the EU, similar trends were observed with food, drinks, and tobacco sales advancing by 0.8%, non-food products witnessing a 2.0% rise, and automotive fuel sales climbing by 2.4%. Among individual member states, Cyprus led the annual growth rankings, followed by Bulgaria and Luxembourg, while Slovakia, Romania, and Estonia recorded declines.

Conclusion

The data underscore a stark contrast in retail performance at the close of 2025. Cyprus not only outshone its European counterparts with its stellar 8.2% annual growth but also highlighted underlying vulnerabilities in other EU markets. For industry leaders and investors, these trends serve as a critical indicator of evolving market dynamics across the continent.

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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.