An uptick in business confidence and stronger household expectations boosted the economic climate, while uncertainty continued to ease, according to a press release by the Economics Research Centre of the University of Cyprus (CypERC).
Economic sentiment in Cyprus recorded a notable improvement in December 2025, with the Economic Sentiment Indicator (ESI-Cyphers) rising by 1.6 points compared to November.
The increase was mainly driven by higher business confidence in the services and retail trade sectors, as well as a marked strengthening in consumer confidence, the ERC said.
In services, the Confidence Indicator rose as firms reported improved assessments of their recent business situation and turnover, despite a deterioration in expectations for future turnover. Retail trade confidence increased for a second consecutive month, supported by upward revisions in sales expectations.
In contrast, the Construction Confidence Indicator remained unchanged from November, as negative revisions in employment expectations were offset by more positive views on order book levels. The Industry Confidence Indicator also remained at November levels, with firms reporting improved assessments of current order books, while views on stocks of finished products and production expectations weakened.
Consumer confidence showed a strong increase in December, "primarily reflecting stronger intentions to make major purchases". At the same time, consumers’ assessments of their own financial situation and, more notably, their expectations regarding the country’s economic conditions continued to improve.
Meanwhile, the Economic Uncertainty Indicator for Cyprus declined for a third consecutive month in December, driven by lower uncertainty among consumers and among firms in the services and industry sectors.
(Source: CNA)
