Cyprus Service Sector Expands In 2025
Cyprus’s service sector recorded strong turnover growth in 2025, driven largely by tourism-related industries and expanding professional services, according to data released by the national statistical service. The figures highlight the continued importance of services as the backbone of the Cypriot economy.
Tourism And Hospitality Lead Growth
Accommodation and food services recorded the strongest increase, with turnover rising by 9.5% compared with 2024. The result reflects sustained tourism demand and continued growth across hospitality businesses. Administrative and support services followed with an increase of 7.4%, reflecting rising activity in business support sectors.
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Broad Gains Across Service Industries
Several additional sectors also reported steady growth during the year. Professional, scientific and technical activities expanded by 4.6%, while the communications sector recorded growth of 4.3%. Transport and storage increased by 2.8%, supported by higher logistics and tourism-related demand. Real estate management registered a smaller rise of 0.4%.
Fourth Quarter Maintains Momentum
The fourth quarter of 2025 reaffirmed the overall positive annual trend. Detailed quarterly analysis revealed a continued strong performance in key segments:
- Accommodation and food services increased by 9.5%
- Real estate management grew by 5.7%
- Administrative and support activities advanced by 4.1%
- Professional, scientific, and technical activities rose by 3.4%
- Communications improved by 2.1%
- Transport and storage saw a 1.4% increase
Service Economy Remains Key Growth Driver
Recent data underscores the resilience of Cyprus’s service-driven economic model. Strong tourism performance continues to support related industries such as transport, logistics and professional services, reinforcing the sector’s role as a central pillar of the country’s economic growth.
