Cyprus’ economy recorded robust growth in the third quarter of 2025, with new national and European data confirming that the country continues to outperform the wider region.

According to a flash estimate by the Cyprus Statistical Service (Cystat), Cyprus’ seasonally adjusted gross domestic product increased by 3.6 per cent year-on-year in the third quarter of 2025.

Cystat said that the positive GDP growth rate is mainly attributed to the sectors wholesale and retail trade and repair of motor vehicles, information and communication, and hotels and restaurants.

The flash estimate indicated that real GDP during the period remained firmly positive, extending the momentum recorded earlier in the year.

The statistical service explained that the flash estimate aims to provide an early picture of the overall development of the Cyprus economy using preliminary data available 45 days after the end of the quarter.

It added that the process uses less input information than the regular quarterly national accounts, which are released 2 months after the end of each quarter.

Meanwhile, Eurostat’s latest flash estimate further reinforced Cyprus’ strong performance within the European context.

Eurostat said that seasonally adjusted GDP in the euro area rose by 0.2 per cent in the third quarter of 2025 compared with the previous quarter, while GDP in the European Union increased by 0.3 per cent during the same period.

Moreover, it reported that euro area GDP had grown by 0.1 per cent in the second quarter of 2025, while EU GDP had increased by 0.2 per cent.

On an annual basis, Eurostat said that GDP increased by 1.4 per cent in the euro area and by 1.6 per cent in the EU in the third quarter of 2025.

It added that these year-on-year increases followed growth of 1.5 per cent in the euro area and 1.6 per cent in the EU in the second quarter of 2025.

Employment also continued to rise across Europe, the office added.

Eurostat said that the number of employed persons increased by 0.1 per cent in the euro area and by 0.2 per cent in the EU in the third quarter of 2025 compared with the previous quarter.

It continued by saying that both zones had recorded employment growth of 0.1 per cent in the second quarter.

On an annual basis, Eurostat said that employment increased by 0.5 per cent in the euro area and by 0.6 per cent in the EU in the third quarter of 2025.

It added that these figures followed annual increases of 0.6 per cent in the euro area and 0.4 per cent in the EU in the second quarter of 2025.

What is more, Eurostat data on growth rates of GDP in volume provided further clarity on the performance of Cyprus relative to Europe.

According to Eurostat, Cyprus’ GDP grew by 3.6 per cent year-on-year in the third quarter of 2025, matching the 3.6 per cent growth recorded in the second quarter and exceeding the 3.4 per cent expansion in the first quarter of 2025.

Eurostat also reported that Cyprus’ quarter-on-quarter GDP grew by 0.9 per cent in the third quarter of 2025, following 0.7 per cent growth in the second quarter and 1.1 per cent in the first quarter of the year.

These figures show that Cyprus has maintained one of the strongest and most consistent expansions across the European Union in 2025.

By comparison, EU GDP grew by 1.6 per cent year-on-year in the third quarter of 2025, maintained 1.6 per cent in the second quarter, and reached 1.7 per cent in the first quarter.

On a quarterly basis, Eurostat said that EU GDP increased by 0.3 per cent in the third quarter and by 0.2 per cent in the second quarter of 2025.

The euro area also recorded steadier but slower growth. Eurostat said that the euro area economy grew by 1.4 per cent year on year in both the second and third quarters of 2025.

It added that quarter-on-quarter GDP growth in the euro area reached 0.2 per cent in the third quarter and 0.1 per cent in the second quarter of 2025.

Taken together, the data confirm that Cyprus continues to outpace both the euro area and the European Union in annual and quarterly GDP growth, underscoring its role as one of the more dynamic economies in the region.