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Cyprus Retail Trade Declines In January While EU Retail Activity Shows Slight Growth

Overview

Data from Eurostat show that Cyprus recorded a 0.8% decline in retail trade volume in January 2026, while the European Union registered a slight increase. Retail trade across the EU rose by 0.1% compared with December 2025.

Monthly Performance: Cyprus Versus The EU

In January 2026, the euro area recorded a seasonally adjusted decline of 0.1% in retail trade volume, while the EU posted a 0.1% increase. Cyprus moved in the opposite direction, with retail activity falling after small increases recorded in previous months. Retail trade had increased by 0.1% in December 2025 following a 0.9% rise in November.

Sector-Specific Insights

Sector data for the euro area show mixed developments across retail categories. Sales of food, drinks and tobacco increased by 0.3% compared with the previous month. Non-food products excluding automotive fuel declined by 0.2%, while automotive fuel sold in specialised stores fell by 1.1%. Across the EU, sales of food, drinks and tobacco increased by 0.4%. Non-food products declined by 0.1%, while automotive fuel sales decreased by 1.0%.

Annual Growth And National Variations

On an annual basis, the calendar-adjusted retail sales index increased by 2.0% in the euro area and by 2.3% across the EU. Several countries recorded stronger monthly increases, including Estonia with a 4.4% rise, Latvia with 2.8%, and Portugal with 2.0%. Other member states reported declines during the same period, including Slovakia, Slovenia, and Croatia. Luxembourg recorded a 24.7% annual increase in retail sales. Lithuania and Estonia also reported higher annual growth rates.

Market Implications

The latest data illustrate differences in retail performance across EU member states and sectors. Variations between national markets and product categories continue to influence consumer spending patterns across the region.

For businesses and policymakers, these figures provide additional context for assessing developments in retail activity, particularly in markets where growth remains uneven. The contrast between Cyprus and the broader EU also highlights how national trends can diverge from wider regional patterns.

Eurostat’s data provide further insight into how retail sectors across the EU are evolving as companies adjust to changing consumer demand and economic conditions.

Cyprus’ Poverty And Social Exclusion Risk Stands At 17.1%

Cyprus recorded a poverty or social exclusion risk rate of 17.1% in 2025, below the European Union average of 20.9%, according to new Eurostat figures. Across the bloc, however, more than 92 million people continued to face the risk, highlighting persistent social and economic inequalities.

More Than 92 Million People At Risk Across The EU

A total of 92.7 million people across the EU were at risk of poverty or social exclusion in 2025, equivalent to just over one in five residents.

Cyprus is treated as a single statistical region because of its size, unlike many member states divided into multiple regions for comparison. Its national figure therefore provides an overall picture but does not capture differences between districts or communities.

Regional Gaps Remain Stark Across Europe

The risk varied considerably across the EU, with the highest rates concentrated largely in southern, eastern and outermost regions. In 24 of the 243 regions with available data, at least 31.5% of the population faced poverty or social exclusion.

These regions were located in Spain, Bulgaria, Greece, Italy, France and Romania, as well as Brussels in Belgium and Bremen in north-western Germany.

French Guiana recorded the highest rate, at 54.8%, followed by Calabria in southern Italy at 45.3% and Sicily at 44%. Melilla, a Spanish autonomous city, recorded 43.7%, while Réunion, another French outermost region, stood at 42.3%.

Central Europe Records The Lowest Rates

At the other end of the scale, 24 regions reported poverty or social exclusion risk rates below 13% in 2025. These included five eastern EU capital regions: Bratislava in Slovakia, Warsaw in Poland, Prague in the Czech Republic, Budapest in Hungary and Zagreb in Croatia.

Other regions with low rates were concentrated in northern Italy, the Czech Republic, northern Belgium, Hungary, Poland and Austria, illustrating the uneven distribution of economic security across Europe.

Cyprus Remains Below The EU Average

Cyprus’ rate of 17.1% places it below the EU average, although it remains higher than the levels recorded in the bloc’s lowest-risk regions.

The figures suggest that Cyprus performs relatively well compared with the wider EU, but poverty and social exclusion remain significant challenges across the bloc, affecting more than 92 million people.

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