Services and construction drive Cyprus growth

The Cyprus economy continued to grow robustly in 2025, with updated data from the Cyprus Statistical Service (Cystat) confirming continued expansion both annually and in the final quarter of the year.

The statistical service reported that the quarterly national accounts data for 2025 were revised following updates to government finance statistics and balance of payments statistics, as well as the incorporation of the balanced supply and use tables for 2022.

According to the revised figures, the gross domestic product growth rate in real terms for the fourth quarter of 2025 reached 4.5 per cent on a seasonally adjusted basis, compared with the corresponding quarter of 2024.

This sustained expansion reflects continued economic momentum towards the end of the year, despite the statistical adjustments.

Based on the production approach for GDP estimation, the positive quarterly growth was mainly driven by wholesale and retail trade including motor vehicle repair, as well as information and communication, hotels and restaurants, and the construction sector.

In parallel, the annual national accounts data for 2025 were also updated due to the same revisions in government finance and balance of payments statistics, alongside the integration of the 2022 supply and use tables.

The updated figures show that the overall economic growth rate for 2025 stood at 3.8 per cent in real terms, confirming a solid annual performance.

At current prices, the gross domestic product recorded an increase of 4.9 per cent, reflecting both real growth and price effects within the economy.

The main drivers of annual growth, based on the production approach in real terms, were information and communication, hotels and restaurants, wholesale and retail trade including motor vehicle and motorcycle repair, and construction.

These sectors collectively underline the importance of services and construction activity in sustaining Cyprus’ economic expansion throughout 2025.