Cyprus Economy Grows at Fastest Pace in 3 Years

The economy of Cyprus expanded 4.5% year-on-year in the final quarter of 2025, accelerating from a 3.6% growth in the third quarter, flash estimates showed. This was the strongest expansion since the fourth quarter of 2022, supported by solid performance in wholesale and retail trade, repair of motor vehicles, information and communication, and hotels and restaurants. On a quarterly basis, GDP rose by 1.4% in the fourth quarter, the highest growth since the first quarter of 2024, following a 0.9% increase in the previous period.

The Cyprus economy expanded by 3.6% year-on-year in the third quarter of 2025, confirming flash estimates and the same pace as in the previous three-month period. On the production side, positive contributions came from several sectors, including agriculture, forestry, and fishing (0.8% vs 0.6% in Q2), manufacturing (2.4% vs 1.7%), wholesale and retail trade (6.5% vs 6%), and information and communications (8.4% vs 6.2%). On the expenditure side, growth accelerated for household consumption (5.4% vs 2.8%), while it slowed sharply for government spending (2.5% vs 12.1%). Additionally, gross fixed capital formation declined (-2.6% vs 17.7%) and net trade contributed negatively, as exports rose (6.7% vs 5.5%) less than imports (8% vs 6.8%). On a quarterly basis, the GDP advanced by 0.9% in Q3, following a 0.7% growth in the preceding period.

The economy of Cyprus expanded by 3.6% year-on-year in the third quarter of 2025, unchanged from an upwardly revised figure in the previous three-month period, flash estimates showed. The growth was supported by positive contributions from several key sectors, including wholesale and retail trade, repair of motor vehicles, information and communication, as well as hotels and restaurants. On a quarterly basis, the country’s GDP grew by 0.9% in the third quarter of 2025, accelerating from an upwardly revised 0.7% expansion recorded in the preceding quarter.