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Cyprus Sees Strong Banking Growth In December 2024 As Loan Demand Rebounds

Cyprus closed out 2024 with a surge in banking activity, as both loan demand and deposits recorded significant increases, according to the latest Monetary and Financial Statistics from the Central Bank of Cyprus (CBC).

Loan Growth Accelerates

Total loans saw a net increase of €503.2 million in December, reversing a slight €1.8 million decline from the previous month. The annual growth rate of total loans accelerated to 2.8%, up from 1.9% in November, bringing outstanding loans to €25.4 billion.

  • Loans to Cyprus residents rose by €150.7 million.
  • Household borrowing increased by €111.3 million.
  • Loans to non-financial corporations also climbed by €111.4 million.
  • Other domestic sectors experienced a net decline of €72.0 million in loan uptake.

Deposits See Strongest Monthly Gain Of The Year

December also saw a significant rise in total deposits, with a net increase of €977.4 million, far exceeding November’s €91.6 million gain. The annual deposit growth rate climbed to 6.6%, up from 5.4% in November, pushing total deposit volume to €55.9 billion by year-end.

  • Deposits from Cyprus residents grew by €877.2 million.
  • Household deposits led the increase, rising €594.5 million.
  • Deposits from non-financial corporations declined by €135.3 million.
  • Other domestic sectors contributed an additional €418.0 million in deposits.

Seasonal Trends And Economic Resilience

The CBC attributed the strong deposit inflow in December to seasonal factors, highlighting the resilience of the Cypriot banking sector as loan activity picked up after a slower period. With rising deposit levels and increasing borrowing demand, Cyprus enters 2025 with a strengthened financial system, positioning its banks for continued growth and stability.

EU Moderates Emissions While Sustaining Economic Momentum

The European Union witnessed a modest decline in greenhouse gas emissions in the second quarter of 2025, as reported by Eurostat. Emissions across the EU registered at 772 million tonnes of CO₂-equivalents, marking a 0.4 percent reduction from 775 million tonnes in the same period of 2024. Concurrently, the EU’s gross domestic product rose by 1.3 percent, reinforcing the ongoing decoupling between economic growth and environmental impact.

Sector-By-Sector Performance

Within the broader statistics on emissions by economic activity, the energy sector—specifically electricity, gas, steam, and air conditioning supply—experienced the most significant drop, declining by 2.9 percent. In comparison, the manufacturing sector and transportation and storage both achieved a 0.4 percent reduction. However, household emissions bucked the trend, increasing by 1.0 percent over the same period.

National Highlights And Notable Exceptions

Among EU member states, 12 reported a reduction in emissions, while 14 saw increases, and Estonia’s figures remained static. Notably, Slovenia, the Netherlands, and Finland recorded the most pronounced declines at 8.6 percent, 5.9 percent, and 4.2 percent respectively. Of the 12 countries reducing emissions, three—Finland, Germany, and Luxembourg—also experienced a contraction in GDP growth.

Dual Achievement: Environmental And Economic Goals

In an encouraging development, nine member states, including Cyprus, managed to lower their emissions while maintaining economic expansion. This dual achievement—reducing environmental impact while fostering economic activity—is a trend that has increasingly influenced EU climate policies. Other nations that successfully balanced these outcomes include Austria, Denmark, France, Italy, the Netherlands, Romania, Slovenia, and Sweden.

Conclusion

As the EU continues to navigate its climate commitments, these quarterly insights underscore a gradual yet significant shift toward balancing emissions reductions with robust economic growth. The evolving landscape highlights the critical need for sustainable strategies that not only mitigate environmental risks but also invigorate economic resilience.

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