Preliminary data on Cyprus’s economic performance in the fourth quarter of 2025 confirm the continued momentum of the country’s economy despite a challenging international environment, Finance Minister Makis Keravnos has said.
According to a preliminary estimate released by CySTAT on 13 February, seasonally adjusted GDP grew by 4.5% year-on-year in the fourth quarter of 2025, underscoring what the minister described as the resilience of the economy.
Keravnos said the policies implemented by the Ministry of Finance of Cyprus have helped create “an environment of stability and prospects, recognised both domestically and by our international and European partners.”
“First, we have secured fiscal stability and sustainability,” he said adding that “through prudent management, we achieve surplus budgets, steadily reduce public debt and create the conditions for the long-term resilience of our economy.”
He also noted that maintaining high levels of liquidity remains a constant objective for the ministry, while strengthening the country’s credit profile is among its strategic priorities.
Keravnos said inflation has now “reached zero levels,” which he argued strengthens purchasing power, stabilises prices of goods and services, and provides a more predictable environment for households and businesses.
At the same time, he pointed to continued improvements in growth and employment, noting that Cyprus is expanding at a faster pace than the European Union average while unemployment remains low.
Referring to the latest data, the Minister said the country’s economic trajectory, which is the result of a sound, people-centred and disciplined economic policy, is confirmed by figures from Eurostat, noting that growth reached around 4.5% in the fourth quarter of 2025, well above the European average.
“Despite a period of heightened uncertainty and an external environment full of challenges, Cyprus continues to record relatively strong growth rates, combined with low inflation and conditions close to full employment”, he said.
Keravnos added that maintaining prudent fiscal and economic management will further strengthen the economy’s resilience, allowing Cyprus to sustain medium-term growth above 3%.
“This course gives us the ability to unlock economic potential and strengthen social policy, while addressing challenges faced by businesses and society more broadly,” he said.
In a separate statement, the Finance Ministry referred to data published by CySTAT and Eurostat, noting that overall economic growth for 2025 is estimated at 3.75%, exceeding earlier projections by the Ministry and other domestic and international economic institutions, which had forecast growth between 2.9% and 3.5%.
(Source: CNA)
