Cyprus Retail Sector Records Robust Growth In January

New data from the Statistical Service of Cyprus (Cystat) show that retail trade expanded in January, with both value and volume indices increasing year-over-year.

Retail Trade Gains Drive Economic Momentum

The value index of retail turnover rose 7.4%, while the volume index increased 8.3% compared with January 2025. The parallel rise in value and volume indicates higher sales receipts and increased quantities sold, pointing to sustained consumer demand at the start of the year.

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Broad Economic Trends Foster A Positive Outlook

Retail growth aligns with broader domestic indicators. Manufacturing output increased 4.4% between January and November 2025, while authorized building permits reached 2,612,000 square meters, up 30.7% compared with the previous period. The construction data suggest continued investment activity across the sector.

Automotive And Trade Performance Highlight Economic Stability

Motor vehicle registrations rose 5.8% in 2025. Private saloon cars increased 3.2%, while light goods vehicles rose 6.9%. Inflation remained subdued, with the consumer price index increasing 0.1% year-over-year. External trade also expanded, with imports reaching €13.55 billion, up 7.7%, and exports rising 7% to €5.5 billion.

Surge In Tourism Strengthens Economic Recovery

Tourist arrivals totaled 4,534,073 between January and December 2025, up 12.2% compared with the previous year. Tourism remains a key contributor to overall economic performance, supporting services, retail, and transport activity.

Conclusion

January retail growth reflects broader expansion across manufacturing, construction, trade, and tourism. The data show continued economic activity across multiple sectors at the start of the year.

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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.

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