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Divergent Trends Define Cyprus Service And Transport Sectors In Q2 2025

Overview Of Mixed Sector Performance

The Cyprus turnover value index for services and transport in the second quarter of 2025 revealed a blend of robust growth and modest declines compared to the same period in 2024. According to data from the state statistical service (Cystat), key sectors exhibited varied performance profiles, reflecting both resilience and emerging challenges across the economy.

Substantial Gains In Accommodation And Food Services

Accommodation and food service activities led the upswing with an 11.7% increase, underpinned by a strong upswing in accommodation services at 13.9% and a 9.3% boost in food and beverage operations. This trend underscores the sector’s capacity to attract both local and international clientele, bolstering Cyprus’s tourism appeal.

Steady Momentum In Administrative And Support Services

Administrative and support service activities improved by 7.2% overall. Notably, the rental and leasing segment rose by 7.8%, while travel agency and tour operator services increased by 4.9%. Complementing these figures, security and investigation operations surged by 11.4%, and office administrative support grew by 9.6%, indicative of growing business operational needs and corporate confidence.

Emerging Trends In Digital And Information Services

The information and communication sector advanced by 4.4%, with publishing and programming and broadcasting growing by 5.2% and 3% respectively. Telecommunications and related IT services also reflected moderate gains, with computer programming and allied activities seeing a 3.4% increase, while information service activities surged by 17.3%, signaling robust digital transformation across the economy.

Professional And Technical Service Sectors

Professional, scientific and technical activities recorded a 3.6% rise. Within this domain, legal and accounting, management consulting, and advertising services experienced modest yet significant growth, while sectors such as architectural and engineering, and motion picture and sound recording saw slight declines of 3.1% and 3.3% respectively.

Transport And Storage: Mixed Performance

The transport and storage sector delivered a 2.1% gain overall. Land transport rose by 5.7%, with water transport increasing by 4% and air transport modestly rising by 0.7%. Support functions including warehousing and postal courier services also reflected positive momentum, though real estate activities experienced a contraction of 1.8% in turnover compared to the previous year.

H1 2025 Sectoral Outlook

Analyzing the first half of 2025, trends maintained a similar pattern with accommodation and food service activities up by 10.9%, administrative and support services by 8.2%, and information and communication at 6.3%. Professional services improved by 4.1% while transport activities continued their steady progression at 2.1%, even as real estate faced a cumulative decline of 3.4%. These figures highlight both the sectoral dynamism and the nuanced challenges that policymakers and business leaders must navigate in a rapidly evolving economic landscape.

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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