Cyprus maintained strong and positive growth momentum in 2025, with GDP expanding by 3.8% for the full year and by 4.5% in the fourth quarter, according to revised data released on Monday by the Cyprus Statistical Service.
The revision of annual and quarterly National Accounts reflects updates to public finances and the balance of payments, as well as the incorporation of balanced Supply and Use Tables for 2022. However, the overall growth picture of the economy remains unchanged.
On an annual basis, real GDP increased by 3.8% in 2025, while in current prices growth reached 4.9%, bringing the value of GDP to €36.48 billion. Economic expansion was mainly driven by the information and communication technologies sector, hotels and restaurants, as well as trade and construction.
Quarterly data show a similar trend, with the economy growing by 4.5% in the fourth quarter of 2025 compared with the same period in 2024, and by 1.4% compared with the third quarter. Construction posted particularly strong growth of 9.4%, followed by information and communications at 8.0%, and trade and tourism at 7.2%.
On the expenditure side, private and public consumption increased by 3.4% and 4.4% respectively on an annual basis in the fourth quarter, supporting economic activity. In contrast, gross fixed capital formation declined sharply by 15.2%, mainly due to fluctuations in high-value investments such as ships and aircraft.
In the external sector, exports of goods and services rose by 2.9%, while imports fell by 4.2%, contributing positively to overall GDP performance.
(Source: CNA)
