EU industrial production rebounded in 2025 after two consecutive annual declines, with the value of sold manufactured goods rising by 2.9 per cent in inflation-adjusted terms, according to a report from Eurostat.

The increase marked the first annual rise since 2022, following declines of 1.5 per cent in 2023 and 1.9 per cent in 2024.

For Cyprus, the European recovery came alongside solid growth in domestic manufacturing, with Cystat data showing manufacturing production increased by 4.4 per cent during the first 11 months of 2025 compared with the same period a year earlier.

In nominal terms, the value of EU sold production rose from €5.87 trillion in 2024 to €6.09 trillion in 2025, according to Eurostat.

The figures measure the value of manufactured goods sold by industry and provide an indication of the scale and direction of industrial activity across the bloc.

Eurostat uses constant prices, adjusted for inflation using 2021 as the base year, to show changes in production value without the effect of price movements.

In nominal terms, meanwhile, production is valued using the actual prices recorded in the year in which goods were produced.

EU production had increased gradually each year between 2015 and 2018 before edging down in 2019 and falling sharply in 2020 as the coronavirus pandemic disrupted industrial activity.

Production recovered in 2021 and 2022, when all the main industrial activity groups recorded increases.

The latest figures show that the recovery has resumed after the two-year downturn.

Among the five largest manufacturing activity groups, food products recorded the strongest increase, with sold production rising by 3.8 per cent in constant-price terms compared with 2024.

Food production was also 11.2 per cent higher than in 2015.

Machinery and equipment recorded the second-largest annual increase at 3.3 per cent, while production of motor vehicles, trailers and semi-trailers rose by a more modest 0.6 per cent.

Not all major manufacturing industries expanded. Production of chemicals and chemical products fell by 1.4 per cent, while fabricated metal products, excluding machinery and equipment, also declined by 1.4 per cent.

These were the only manufacturing groups among those covered to record declines over the past decade, according to Eurostat.

Cyprus was among the countries where manufacturing activity recorded relatively strong growth during 2025.

Cystat figures show that the island’s overall industrial production increased by 3.6 per cent during 2025, while manufacturing was the main driver of growth.

Manufacturing production increased by 4.6 per cent in December alone compared with December 2024, according to the Statistical Service.

The annual increase was broad-based across several manufacturing activities.

For the full year, production of other non-metallic mineral products rose by 10.9 per cent, while wood and cork products increased by 9.1 per cent.

Basic metals and fabricated metal products grew by 8 per cent, while furniture and related manufacturing activities increased by 7.2 per cent.

Some areas nevertheless contracted. Production of paper and paper products and printing fell by 9.5 per cent during the year, while textiles, wearing apparel and leather products declined by 3.8 per cent.

Electricity supply also recorded a 2 per cent annual contraction, the data showed.

The figures suggest that Cyprus manufacturing performed more strongly than the EU’s overall industrial recovery in 2025, although the structure of the island’s industrial sector differs substantially from that of the bloc’s larger manufacturing economies.

The recovery also came against broader economic growth in Cyprus, with tourism, construction, trade and manufacturing all recording gains during the year.

Eurostat’s latest figures provide a broader European context for that performance, showing that industrial activity across the bloc has moved back into expansion after two difficult years.

The return to growth does not mean all industrial sectors have recovered equally, however, with food, machinery and equipment among the strongest performers while chemicals and fabricated metals continued to face pressure.

For Cyprus, the relatively strong performance of manufacturing provides another indication that industrial activity contributed positively to the economy during 2025, even as individual sectors experienced contrasting trends.