Cyprus has achieved impressive GDP growth, marking a 3.3 per cent increase in the second quarter of 2025, according to Eurostat. This places the island nation third among EU member states, following Ireland’s remarkable 18 per cent growth and Bulgaria’s 3.4 per cent increase.
When contrasted with the previous quarter, Cyprus’s GDP rose by 0.5 per cent, highlighting a steady upward trend. Across the European Union, seasonally adjusted GDP saw an increase of 1.5 per cent in the eurozone and 1.6 per cent across the EU, compared to the same quarter in 2024.
Gdp growth: Adequate Growth Amidst Global Trends
In the broader economic landscape, the eurozone’s GDP experienced a modest growth of 0.1 per cent compared to the first quarter of 2025, while the EU reflected a 0.2 per cent increase. Notably, the first quarter had already seen a 0.6 per cent increase in the eurozone and a 0.5 per cent rise in the EU.
Interestingly, Luxembourg was the only EU member state to report a contraction in GDP, with a decline of 0.2 per cent. Finland, Germany, and Italy also faced slight declines compared to the first quarter of 2025, indicating a mix of economic performances across the region.
Job Market Strengthens Alongside Economic Growth
In addition to GDP growth, Cyprus also recorded the fifth largest increase in employment across the EU, with a rise of 1.8 per cent compared to the same quarter in the previous year. This growth represents a 0.5 per cent increase from the first quarter of 2025, showcasing a robust job market.
According to Eurostat, approximately 219.9 million people were employed in the EU during the second quarter of 2025, with 171.6 million of those in the eurozone. The correlation between GDP growth and employment figures allows for a comprehensive analysis of labour productivity, which has also seen positive trends.
Productivity Gains Reflect Economic Health
Labour productivity in the eurozone increased by 0.8 per cent per person employed and by 1.1 per cent when measured in hours worked, compared to the same quarter in 2024. In the EU, these figures were 1.2 per cent and 1.5 per cent, respectively.
In Cyprus, productivity growth reached an impressive 2.2 per cent year-on-year when evaluated based on hours worked, positioning the country third in the EU, following Malta and Luxembourg. However, there was a slight decline of 0.2 per cent compared to the first quarter of 2025, signalling some fluctuations in productivity metrics.
As Cyprus continues to navigate the economic landscape, these figures underscore a period of growth and resilience amidst varied global economic conditions. The combination of GDP growth and a strengthening job market bodes well for the island’s future economic prospects.
