cyprus economy — cyprus economy — Cyprus’ economy enjoyed a robust growth of 3.8 per cent in 2025, with its gross domestic product (GDP) reaching an impressive €30.52 billion in real terms, according to preliminary estimates from the Cyprus Statistical Service (Cystat).
The statistical service highlighted that this growth rate marks a significant increase compared to the previous year, 2024. In current prices, GDP saw a rise of 4.5 per cent, elevating its value to €36.32 billion.
Cyprus economy: Key Drivers of Economic Expansion
The positive growth in 2025 was largely fuelled by several key sectors. Information and communication technology (ICT), hotels and restaurants, construction, and wholesale and retail trade, including the repair of motor vehicles and motorcycles, played pivotal roles in driving this economic surge.
Consumer Spending on the Rise
Consumer behaviour also reflected the economic upswing. Public consumption climbed by 6.7 per cent, amounting to €6.82 billion, while private consumption increased by 3.7 per cent, reaching €20.65 billion. These figures indicate a growing confidence among consumers and a willingness to spend more.
Investment and Trade Dynamics
Gross capital formation demonstrated a healthy growth of 2.3 per cent, totalling €7.35 billion. Furthermore, exports of goods and services rose by 5.3 per cent to €35.52 billion. However, this positive trade balance was somewhat countered by a 4.9 per cent increase in imports, which totalled €34.04 billion, exerting downward pressure on GDP.
Fourth Quarter Performance
Notably, the fourth quarter of 2025 showcased a remarkable GDP growth of 4.5 per cent in real terms, as reported by Cystat. During this period, GDP reached €7.76 billion, reflecting a 1.4 per cent increase from the previous quarter. The growth in this quarter was again attributed to the wholesale and retail trade, along with the ICT sector and the hospitality industry.
