Cyprus Retail Sector Sees Strong 2025 Growth: Value Up 6.1%, Volume Up 7.9%

by THEFUTURE.TEAM

February 4, 2026

Strong Overall Performance

The retail sector reported a significant uplift in 2025, with total turnover growing by 6.1% in value and 7.9% in volume compared to 2024, according to data released by the national Statistics Agency. This surge underlines a sustained boost in consumer activity and an expanding market environment, affirming the resilience of the retail landscape.

Sector-Specific Highlights

Analyzing the data by category provides further insights into the drivers behind the growth. The specialized food, beverages and tobacco retail outlets led the value increase with a notable 14.5% rise. Concurrently, the apparel and footwear segment demonstrated exceptional performance in volume, also recording a 14.5% increase. These results reflect both heightened consumer spending and a pronounced shift in purchasing patterns during the period.

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Momentum At Year End

The upward trend continued in the final month of the year. In December, the Value Turnover Index rose 5.8% year on year. The Volume Turnover Index for retail trade increased by 8.9% compared with December 2024, according to industry reports. The figures indicate that retail activity remained strong at the end 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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