cyprus economy — Cyprus’ economy continues to grow, bolstered by significant contributions from tourism and construction in the first ten months of 2025. According to the statistical service, Cystat, the latest Monthly Economic Developments bulletin reveals a positive trend across various sectors, despite ongoing external uncertainties.
Cyprus economy: Growth Across Key Sectors
The report, released on Wednesday, provides insights into the economic performance from January to October 2025, highlighting a broad-based growth in industry, trade, and tourism. Manufacturing production saw a notable increase of 3.6% during the first nine months of 2025 compared to the same period in 2024, showcasing the resilience of industrial activity on the island.
Construction Sector Expansion
In the construction sector, a robust expansion was evident, with total building permits authorised reaching 1,998,500 square metres from January to August 2025. This marks a substantial 16.1% increase compared to the previous year, reflecting a strong momentum in development activities throughout Cyprus.
Rising Vehicle Registrations
Further indicators of economic health can be seen in vehicle registrations, which grew by 4.2% to a total of 44,732 vehicles during the January to October period. Private saloon car registrations saw a slight uptick to 29,706, a modest increase of 0.4%. In contrast, light goods vehicle registrations experienced a more pronounced rise, reaching 4,111 vehicles, representing a 6.6% increase year on year.
Stable Inflation Amid Growth
Despite the economic growth, inflationary pressures remained manageable. The Consumer Price Index saw a modest rise of just 0.3% during the first ten months of 2025 compared to the same timeframe in 2024, suggesting that the economy is navigating external challenges effectively.
Strong Trade Performance
Trade figures also reflected robust demand, with total imports of goods reaching €11.2 billion in the first ten months of 2025, a 12.3% increase over the previous year. Exports, too, saw growth, with total goods exported rising to €4.61 billion, marking an increase of 4.3% year on year.
Tourism as a Key Economic Driver
Tourism remains a crucial pillar of Cyprus’ economic growth. The first ten months of 2025 saw total tourist arrivals reach 4,142,534, an impressive 11.1% increase from the 3,727,196 arrivals recorded during the same period in 2024. This surge underscores the importance of the tourism sector in driving the island’s economic momentum.
Cystat’s bulletin underscores that these trends are influenced by long-term factors such as population growth and technological advancements, contributing to the overall expansion of the Cyprus economy.
