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Eurozone Retail Trade Remains Flat As Year‐Over‐Year Growth Accelerates

The latest preliminary figures released by Eurostat reveal that retail trade volume in the euro area experienced a marginal decline of 0.1% in September 2025, while remaining stable across the European Union. Despite this slight monthly dip, a year‐on‐year analysis tells a more positive story.

Steady Month‐to‐Month Performance

After a 0.1% decrease in August 2025, the euro area’s retail trade volume maintained its level in September. In the broader EU, the figures held steady, highlighting a temporary pause in the fluctuating retail environment. Sector-specific analysis indicates that food, drinks, and tobacco maintained stability in the euro area, while non-food products (excluding automotive fuel) fell by 0.2% and automotive fuel in specialized stores experienced a sharper 1.0% decline.

Compelling Annual Trends

On an annual basis, the calendar‐adjusted retail sales index demonstrated notable growth. The euro area recorded a 1.0% increase compared with September 2024, while the broader EU outpaced this with a 1.3% rise. This uptick is driven by contrasting performances among member states, with Cyprus leading the charge with an 8.5% increase. Malta and Bulgaria followed with increases of 6.6% and 5.7% respectively.

Divergent Market Performances Across Nations

Conversely, several member states showed declines. Italy faced a 2.3% reduction, with Romania (2.1%), Belgium (0.8%), and Austria (0.1%) trailing behind. On a monthly basis, the largest decreases were observed in Lithuania (1.1%), while Latvia, Slovenia, and Italy also saw significant drops. In contrast, Luxembourg and Malta recorded the highest monthly gains at 1.7%, followed by Estonia (1.5%) and Slovakia (1.4%).

Sector-Specific Insights

When analyzing annual changes in more specific sectors within the euro area, the food, drinks, and tobacco segment increased by 1.0%, and non-food products (excluding automotive fuel) by 1.4%. Notably, automotive fuel in specialized stores decreased by 0.7%. Across the EU, food, drinks, and tobacco grew by 0.5%, non-food products by 1.9%, and automotive fuel in specialized outlets saw a modest gain of 0.5%.

These granular insights offer a clearer picture of the evolving dynamics within the retail sector across Europe, underscoring both resilience and regional variability amid an overall positive annual trend.

Cyprus Maps Out New Strategy To Attract International Businesses And Skilled Talent

Cyprus is preparing a renewed effort to attract international companies and skilled professionals, with the government targeting Cabinet approval by December 2026 and implementation beginning in 2027.

The proposed Business and Talent Attraction Strategy for 2027–2030 is designed to draw new investment, support the expansion of companies already operating on the island and increase the contribution of international businesses to the Cypriot economy. Its specific measures have yet to be finalised.

A Strategy Shaped With Business Input

Energy, Commerce and Industry Minister Michalis Damianos outlined the government’s plans at the first consultation workshop, which brought together businesses, universities, banks and public authorities.

According to the ministry, Damianos emphasised that the strategy should be developed in close consultation with investors and other stakeholders. The goal is to shape measures around the practical needs of the businesses expected to use them, rather than designing support without their input.

At Monday’s workshop, ministry Permanent Secretary Marios Panayides reviewed progress under the existing strategy, explained the role of the Business Support Centre and presented the proposed framework for 2027–2030. Participants included companies operating in Cyprus, universities, banking institutions, government ministries and Invest Cyprus, whose representatives sit on the technical committee reviewing the strategy.

Building On Existing Business Support

A central element of the government’s approach is the Business Support Centre, which assists local and international investors seeking to establish or expand operations in Cyprus.

The centre began operating in May 2025 and incorporates the Business Facilitation Unit. Established in 2022, the unit is intended to simplify administrative processes and help companies navigate requirements related to registration, licensing and employment.

The new strategy builds on the framework introduced in 2022, which aimed to strengthen Cyprus’s competitiveness through investment incentives, more accessible recruitment of skilled professionals from outside the European Union and more efficient business registration procedures.

Investor Interest Meets Practical Challenges

The initiative comes as Cyprus seeks to convert investor interest into sustained economic activity. In the EY Cyprus Attractiveness Survey 2026, 83% of international investors surveyed described the island as an attractive investment destination. Meanwhile, 62% of businesses already operating in Cyprus said they planned to expand over the following 12 months.

That optimism exists alongside persistent obstacles. High energy costs, bureaucracy and access to finance remain concerns for investors. How effectively the government addresses these issues will influence whether companies choose to establish or grow their presence on the island.

Consultations Continue Through October

A second workshop is scheduled for Thursday, October 29, bringing together chambers of commerce, professional associations, organised business groups and professional services companies. Feedback from both sessions will inform the government’s final proposal, which is scheduled to go before the Council of Ministers in December 2026.

The consultations form part of the government’s ongoing dialogue with the business and investment community, launched at the initiative of President Nikos Christodoulides. The process is intended to identify measures that reflect business needs while supporting employment, investment and broader economic growth.

For now, the government has not published the proposed measures. Their scope and detail will depend on the consultation process—and on how successfully the final strategy translates investor interest into long-term business activity in Cyprus.

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