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Rising Construction Costs in Cyprus: A 2025 Insight

In the first four months of 2025, the construction scene in Cyprus has felt the pinch of rising material costs. According to the state statistical service, the construction materials price index jumped by 1.2%, compared to the same timeframe in 2024.

In April alone, the index levelled at 119.03 units, marking a subtle yet impactful 0.18% uptick from March. This trend is pivotal as it integrates with the national economic strategies mentioned earlier in Cyprus’ Economic Growth: A 2025 Projection.

Mineral and Electromechanical Products Lead the Increase

A detailed breakdown reveals substantial increases in specific categories: mineral products spiked by 3.80%, while products derived from minerals saw a 3.31% rise. Additionally, electromechanical goods increased by 1.46%.

The price hike also touched wood products, insulating materials, chemicals, and plastics, which saw a collective 0.56% rise.

Metal Products Offer a Silver Lining

Contrary to the overall upward trend, metal products exhibited a minor downturn of 0.46%, suggesting a temporary relief in an otherwise escalating market.

This index is crucial for understanding shifts that influence both private developments and public infrastructure projects.

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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