Cyprus recorded the third largest annual increase in gross domestic product during the second quarter of 2025, according to figures published by Eurostat.

The country’s GDP rose by 3.3 per cent, trailing behind Ireland, which registered growth of 18 per cent, and Bulgaria, which recorded a 3.4 per cent increase.

When compared with the previous quarter, Cyprus posted a GDP growth of 0.5 per cent.

Across the European Union, during the second quarter of 2025, seasonally adjusted GDP increased by 1.5 per cent in the eurozone and 1.6 per cent in the EU compared with the same quarter of 2024.

In comparison with the first quarter of 2025, eurozone GDP grew by 0.1 per cent and EU GDP by 0.2 per cent.

During the first quarter of 2025, eurozone GDP had increased by 0.6 per cent while EU GDP had grown by 0.5 per cent.

On a year-on-year basis, Luxembourg was the only EU member state to record a contraction in GDP, falling by 0.2 per cent.

When compared with the first quarter of 2025, GDP fell in Finland by 0.4 per cent, in Germany by 0.3 per cent, and in Italy by 0.1 per cent.

Meanwhile, in the United States, GDP grew by 2.1 per cent year-on-year in the second quarter of 2025, and by 0.8 per cent compared with the previous quarter.

At the same time, Eurostat data showed that Cyprus registered the fifth largest increase in employment in the EU.

Employment in Cyprus rose by 1.8 per cent in the second quarter of 2025 compared with the same quarter of 2024, and by 0.5 per cent compared with the first quarter of 2025, marking the fourth largest quarterly increase.

Based on seasonally adjusted figures, Eurostat estimated that during the second quarter of 2025, 219.9 million people were employed in the EU, of whom 171.6 million were in the eurozone.

Eurostat noted that the combination of GDP and employment figures enables the assessment of labour productivity.

In the second quarter of 2025, labour productivity per person employed rose by 0.8 per cent in the eurozone and by 1.2 per cent in the EU compared with the same quarter of 2024.

When measured in terms of hours worked, productivity increased by 1.1 per cent in the eurozone and by 1.5 per cent in the EU compared with the second quarter of 2024.

In Cyprus, based on hours worked, growth reached 2.2 per cent year-on-year, placing the country in third position across the EU behind Malta and Luxembourg.

However, when compared with the first quarter of 2025, Cyprus recorded a decline of 0.2 per cent in this indicator.