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EU Industrial Production Returns To Growth In 2025 As Cyprus Outperforms The Bloc

EU industrial production returned to growth in 2025, ending two consecutive years of decline, according to new Eurostat data. The value of sold manufactured goods rose 2.9% in inflation-adjusted terms, marking the first annual increase since 2022 after contractions of 1.5% in 2023 and 1.9% in 2024.

Industrial Recovery Regains Momentum

In nominal terms, the value of EU sold production increased from €5.87 trillion in 2024 to €6.09 trillion in 2025. Eurostat measures the value of manufactured goods sold by industry, using constant prices with 2021 as the base year to distinguish changes in production from the effects of inflation.

The figures point to a return to expansion after two difficult years, although the recovery varied significantly across manufacturing industries.

Food And Machinery Lead The Upswing

Among the five largest manufacturing activity groups, food products recorded the strongest annual increase, with sold production rising 3.8% in constant-price terms from 2024. Food output was also 11.2% higher than in 2015.

Machinery and equipment followed with a 3.3% increase, while motor vehicles, trailers and semi-trailers rose 0.6%. Chemicals and chemical products declined 1.4%, as did fabricated metal products excluding machinery and equipment.

Cyprus Posts Strong Manufacturing Growth

Cyprus also recorded solid industrial growth in 2025. Data from the Statistical Service of Cyprus, or Cystat, show manufacturing production increased 4.4% in the first 11 months of the year from the same period in 2024, while overall industrial production rose 3.6%.

Manufacturing remained the main driver of that increase, with output up 4.6% in December alone. Several segments recorded strong gains, including other non-metallic mineral products, up 10.9%; wood and cork products, up 9.1%; basic metals and fabricated metal products, up 8%; and furniture and related manufacturing, up 7.2%.

Other sectors contracted during the year. Production of paper and paper products and printing fell 9.5%, while textiles, wearing apparel and leather products declined 3.8%. Electricity supply also fell 2%.

Cyprus Outpaces The Broader EU Recovery

Cyprus outperformed the EU’s broader industrial recovery in 2025, although its manufacturing base differs significantly from those of the bloc’s larger industrial economies. The performance also came amid broader economic growth, with tourism, construction, trade and manufacturing all recording gains during the year.

The Eurostat data indicate that European manufacturing regained momentum after two years of contraction, while Cyprus saw industrial activity become a more significant contributor to its wider economic growth.

Cyprus Business Electricity Prices Rank Among The EU’s Highest

Electricity prices for a defined group of non-household consumers in Cyprus reached €0.23 per kilowatt-hour in the first half of 2026, placing the country among the most expensive in the EU, according to Eurostat.

The rate matched Italy and exceeded the EU average of €0.18. Ireland recorded the highest price at €0.27 per kilowatt-hour.

The figures cover non-household consumers with annual electricity consumption of between 500 and 2,000 megawatt-hours, rather than all businesses or households.

EU Electricity Prices Continued To Fall

Across the EU, average prices for this consumer group declined by 2% compared with the second half of 2025 and were 5.4% lower year on year.

The lowest rates were recorded in Finland (€0.09 per kWh) and Sweden (€0.12), followed by Denmark, Spain and Portugal, all at €0.13.

Prices Fell In Most Member States

Electricity prices declined year on year in 19 EU countries during the first half of 2026. Luxembourg recorded the largest fall, at 23.8%, followed by Czechia (11.9%) and Greece (11.8%).

Prices increased in eight member states, led by Sweden (18.8%), Finland (18.7%) and Bulgaria (14.2%). Despite the sharp increases, Finland and Sweden continued to have the lowest electricity prices in the bloc.

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