Cyprus economy shows strong resilience amid external risks, Finance Ministry says

07:45 - 16 May 2025

Economy Reporter

The Cypriot economy continues to demonstrate resilience in the face of external challenges, according to a written statement released by the Ministry of Finance, following the publication of preliminary GDP data by CySTAT and Eurostat.

The Ministry noted that Cyprus recorded a real GDP growth rate of 3.0% in the first quarter of 2025, significantly above the EU and Eurozone averages, which stood at 1.4% and 1.2% respectively.

"This growth rate is more than double the Eurozone and EU averages and highlights the strength of the Cypriot economy compared to other European economies," the Ministry said.

"Amid a highly uncertain external environment, this performance suggests that the anticipated economic slowdown and the impact of tariffs in 2025 will likely be less severe for Cyprus than for other EU countries."

It also adds that "these figures confirm that the Cypriot economy is entering this period of increased uncertainty — due to geopolitical developments and in particular the anticipated imposition of tariffs by the United States — with a relatively high growth rate."

According to the Ministry of Finance, a prudent and disciplined fiscal policy and economic management by the Government, combined with the implementation of the National Recovery and Resilience Plan (RRP), will contribute to the resilience of the Cypriot economy, enabling Cyprus to face the challenges of the external environment.

(Source: CNA)

Cyprus economy shows strong resilience amid external risks, Finance Ministry says

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