The Cypriot economy maintained a robust trajectory through December 29, 2025, as the government successfully navigated a complex landscape of global trade tensions and regional instability to implement landmark domestic reforms.

Globally, uncertainty sharpened early in the year as renewed trade tensions emerged following tariff measures announced by US President Donald Trump, reviving fears of higher inflation and a possible slowdown in global growth.

These pressures coincided with persistent geopolitical instability, from the ongoing war in Ukraine to heightened tensions in the Middle East, while climate-related risks increasingly shaped economic planning across Europe.

Against this backdrop, Cyprus also faced a demanding domestic agenda.

The government moved forward with a comprehensive tax reform, submitting a package of 6 bills aimed at reshaping income and corporate taxation, while long-standing negotiations between social partners over the Automatic Cost of Living Allowance (CoLA) entered a decisive phase after years of stalemate.

Despite these challenges, economic performance remained resilient.

The total sales of petroleum products in Cyprus rose by 5.6 per cent in November 2025, compared with the same month a year earlier, data released by the Statistical Service (Cystat) showed this week.

Total volumes reached 119,953 tonnes, supported mainly by sharp increases in marine and aviation fuels.

The most pronounced rise was recorded in marine gasoil provisions, which surged by 97.4 per cent year-on-year, while sales of aviation kerosene jumped by 27.5 per cent.

Asphalt sales also rose, up 42.8 per cent.

More moderate gains were recorded in road diesel, which increased by 1.9 per cent, and motor gasoline, which edged up by 0.4 per cent.

The Larnaca district completed its full annual tourism action plan in 2025 while rolling out additional initiatives aimed at strengthening the destination’s overall tourism offering, according to the the Larnaca regional tourism board (Etap).

In a statement, the board said 2025 marked another year of measurable progress, noting that the planned programme was delivered in full with the support of the Deputy Ministry of Tourism, local authorities and tourism stakeholders, while further projects were introduced to enhance the region’s tourism product.

The actions implemented were designed around changing traveller expectations, the company said, while also supporting local communities and organisations that preserve Larnaca’s authentic character, with the aim of safeguarding quality and international recognition of the destination.

Projects during the year focused on upgrading public spaces, emphasising local identity and advancing digital innovation. Among the key initiatives was the launch of an experiential activities booking platform, intended to promote authentic experiences and support the destination’s digital transition.

Eurobank this week announced that it bought back 682,000 of its own shares on the Athens Stock Exchange between December 22 and December 26, 2025, as part of its approved share buyback programme, in a move aimed at implementing decisions taken by its shareholders and board.

The bank said the shares were acquired at an average price of €3.5172 per share, with a total cost of €2.4 million, increasing the total number of treasury shares held to 2,442,945.

According to the announcement, the transactions were carried out under the Share Buyback Programme approved by the Extraordinary General Meeting of shareholders on October 22, 2025, in line with Article 49 of Law 4548/2018.

“The ‘Eurobank Société Anonyme’ (hereinafter ‘Eurobank’ or the ‘Bank’), following its December 12, 2025 announcement regarding the commencement of the Share Buyback Programme,” said the bank, adding that the programme was approved by shareholders and subsequently implemented by the board of directors.

Labour shortages in the construction sector have become a persistent challenge in both Cyprus and across the European Union.

This has prompted industry bodies such as the federation of building contractors (Oseok) to repeatedly warn policymakers that long-term structural issues, rather than short-term pressures, are undermining growth and competitiveness.

This broader backdrop has again come into focus after Oseok met Labour Minister Marinos Mousiouttas earlier this month to discuss the chronic lack of workers in the construction sector and the need for policy responses that address both immediate and long-term needs.

According to Oseok, the meeting highlighted concerns that the labour shortage is no longer cyclical but structural, with the federation stressing its readiness to contribute to dialogue and policy design aimed at strengthening the sector.

Eurolife Limited has officially welcomed the customers of the former Ethniki Insurance (Cyprus) Ltd following the successful completion of a portfolio transfer that marks a significant expansion for the Bank of Cyprus group.

“This important step confirms our commitment to offering excellent service, innovative solutions and security to every customer,” the company stated.

“As the trusted insurance partner of all our customers, we will continue to protect what has the greatest value for you and your loved ones,” the firm added.

Eurolife Limited has now become the official controller of the personal data of all former Ethniki Insurance clients as part of the transition.

The Bank of Cyprus Holdings Public Limited Company previously announced the completion of its acquisition of 100 per cent of Ethniki Insurance Cyprus Ltd following a binding agreement signed with Ethniki Hellenic General Insurance Company S.A. on April 14, 2025.

Cyprus’ Industrial Production Index reached 116.4 units in October 2025, using 2021 as the base year set at 100 units, according to the Statistical Service (Cystat).

The index rose by 3.5 per cent compared with October 2024, while during the period from January to October 2025 it increased by 3.1 per cent year-on-year.

In terms of sectoral performance, manufacturing activity strengthened by 4.3 per cent compared with a year earlier.

Meanwhile, water supply and materials recovery increased by 7.4 per cent, while electricity supply recorded a decline of 3.4 per cent and mining and quarrying fell by 1.7 per cent.

Within manufacturing, the most notable annual gains were seen in basic metals and fabricated metal products, which expanded by 13.8 per cent.

In addition, wood and products of wood and cork, excluding furniture, increased by 9.9 per cent, rubber and plastic products rose by 8 per cent, while furniture, other manufacturing and repair and installation of machinery and equipment advanced by 7.4 per cent.