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Retail Sector Posts Strong Performance In 2025, Paving The Way For Future Growth

by THEFUTURE.TEAM

February 5, 2026

Robust Growth Across Key Metrics

The retail sector experienced one of its strongest years in 2025, recording significant gains in both value and volume indices. This dual growth reflects an increase in not only the number of products sold but also their overall market value, underscoring a dynamic shift in the industry’s performance.

Sector’s Impact On The Economy

Today, retail is recognized as a pivotal industry within the broader economic landscape. As the largest employer in the market, retail not only drives job creation but also ranks second in its contribution to national GDP. Business experts point to an anticipated continued upward trajectory into 2026, bolstered by the influx of new international brands and the expansion of existing retail establishments. In Cyprus, for instance, retail now contributes roughly 16% to the GDP while employing about 20% of the workforce. The food segment alone is generating nearly 3 billion in annual turnover, and when combined with apparel, electronics, DIY, and other retail categories, the numbers are truly impressive.

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Statistical Insights And Market Trends

According to the latest report from the Statistical Service of Cyprus, the period from January to December 2025 witnessed a 6.1% rise in the Value Index of Retail Turnover and a 7.9% increase in the Volume Index compared to 2024. Notably, specialized stores dealing in food, beverages, and tobacco led value gains with a 14.5% increase, while clothing and footwear posted a similar 14.5% rise in volume. In December alone, the Value Index surged by 5.8% and the Volume Index by 8.9% year-on-year.

Optimistic Outlook For 2026

Marios Antoniou, Secretary General of the Pan-Cypriot Retail Association (PASYLE), asserted the rising prominence of retail in the national economy. Following tourism, retail now stands as the largest sector in this regard, with strong investor confidence demonstrated by active waitlists at shopping centers and the announcement of two upcoming retail complexes in Limassol. These developments vividly illustrate the robust market sentiment from both local and foreign investors.

With these encouraging trends, industry leaders forecast positive growth rates for 2026, suggesting that the retail sector is well-positioned to continue its upward momentum and further solidify its economic significance.

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EU Services Production Grows As Information And Communication Lead

by THEFUTURE.TEAM

November 10, 2026

Services production continued to expand across the European Union in August 2026, with information and communication recording the strongest annual growth. However, performance varied significantly between industries and member states, while Cyprus reported a mixed picture, with business services expanding and hospitality-related activities declining.

Information And Communication Leads Sector Growth

Compared with August 2025, services production increased by 5.9% in the euro area and 5.8% across the EU in information and communication. Transportation and storage also recorded growth, rising by 2.1% and 1.9%, respectively.

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Real estate activities increased by 1.6% in the euro area and 1.1% in the EU. Professional, scientific and technical activities grew by 1% in both areas, while administrative and support services advanced by 1.1% and 1.3%.

Accommodation and food services was the only major sector to record an annual decline, falling by 0.1% in both the euro area and the EU.

The monthly figures were more mixed. Information and communication remained the strongest performer, increasing by 1.2% in the euro area and 1% across the EU. Real estate activities rose by 0.4% and 0.9%, respectively, while transportation and storage edged up 0.1% in the euro area but declined by 0.2% in the EU.

Administrative and support services recorded modest gains of 0.2% in the euro area and 0.1% in the EU. Accommodation and food services fell by 0.3% and 0.4%, while professional, scientific and technical activities declined by 0.8% and 0.9%, respectively.

Slovakia And Greece Record Strongest Annual Growth

Romania recorded the largest monthly increase in services production, at 5.2%, followed by Malta at 1.8% and Portugal at 1.7%. Luxembourg experienced the steepest decline, with output falling by 5.1%, followed by Bulgaria at 2.3% and Denmark at 1.9%.

On an annual basis, Slovakia led with growth of 10%, followed by Greece at 9.3% and Malta at 7.5%. Hungary recorded the weakest performance, with services production declining by 5.6%. Denmark fell by 5.3%, while Italy recorded a smaller decrease of 0.3%.

Cyprus Sees Growth In Business Services But Weakness In Hospitality

Cyprus’ latest figures show a similar divide between expanding business services and weaker hospitality-related activities. According to the Statistical Service of Cyprus (Cystat), professional, scientific and technical activities recorded the strongest annual growth among the covered sectors in the second quarter of 2026, increasing by 3.4%.

Transportation and storage and information and communication both grew by 2.1%, while real estate activities rose by 1.6%. In contrast, accommodation and food services declined by 3.1% year on year, and administrative and support services fell by 2.2%.

First-half results were more favourable for several sectors. Between January and June, professional, scientific and technical activities grew by 3.5%, transportation and storage by 2.8%, real estate by 2.1% and information and communication by 1.3%.

Nevertheless, administrative and support services contracted by 1% over the six-month period, while accommodation and food services declined by 0.7%.

How Cyprus’ Figures Differ From Eurostat’s Data

The Eurostat and Cystat figures measure different aspects of economic activity and are not directly comparable. Eurostat’s services production index tracks changes in the volume of output, whereas Cystat’s Turnover Value Index for Services and Transport measures the value of sales at current prices.

The reporting periods also differ: Eurostat’s figures cover August, while the cited Cypriot data relate to the second quarter and first half of 2026.

Cystat transmits services production data to Eurostat but does not yet publish a separate national production index. Turnover figures therefore remain the main publicly available national indicator for the sector.

Taken together, the data point to continued growth in several of Cyprus’ business-oriented services, alongside persistent pressure on accommodation, food and administrative support activities.