LCCI Barometer: Limassol’s business community says economy now in better state than six months ago

The Spring edition of the Business Barometer by the Limassol Chamber of Commerce and Industry (LCCI) demonstrates a perception among Limassol’s business community that the economy is currently in a better state than it was six months ago.

At the same time, the significantly increased demand for staff and the willingness of businesses to proceed with new investments point to a thriving business environment with strong expansion prospects.

As emphasised in the report, improvement is evident not only in positive indicators—such as readiness to hire new staff or satisfaction with investment returns—but also in the weakening of negative indicators.

For example, in autumn 2024, 13% predicted lower sales, while that figure has now dropped to 6%. Similarly, the percentage of those with reduced confidence in the Cypriot economy fell to 19%, down from 29% six months earlier.

Progress in ESG understanding and adoption

Another area of clear progress is the growing awareness among businesses regarding modern-day obligations, especially concerning environmental and ESG commitments.

The previous sluggishness and relative disinterest observed over much of the last two years in this area has clearly diminished. The Chamber’s efforts—through educational programmes and other initiatives—are starting to bear fruit.

Not only has awareness of ESG improved, but more importantly, businesses are now much more willing to practically move forward with the preparations needed to comply with ESG requirements.

Satisfied with investments – more planned

Although businesses in Limassol were already highly satisfied with their investment performance in autumn 2024, satisfaction is even stronger in spring 2025. Nearly two out of three participants in the latest Business Barometer placed themselves in the “fairly” or “very satisfied” category.

Regarding intentions to invest in the next quarter, the findings are essentially identical to those of autumn 2024, with many businesses indicating plans to invest in software and buildings.

Among those not planning new investments, nearly one in four cite uncertainty over economic prospects as the main reason—comparable to the figure from autumn 2024. However, the number of businesses now seeing investment costs as prohibitive has dropped significantly compared to six months ago.

Another sign of overall improvement is the single-digit share (7.3%) of businesses predicting lower sales—something not seen for quite some time.

Equally important is the finding that the ratio of expected sales increases vs. decreases in Cyprus rose from 1.64 in autumn 2024 to 3.52 in spring 2025. For overall sales, the ratio went from 2.20 to 5.12 over the same period.

An indicator of stability is that an overwhelming majority—more than four in five businesses—do not plan to make changes to their business plan.

Rising demand for personnel and hiring plans

Demand for labour remains high—slightly higher even than six months ago—typically a sign of a healthy, expanding business sector.

Personnel needs are especially acute in Limassol, with businesses listing the following roles they intend to hire within the next three months:

• Machine operators (maintenance and lubrication)
• Chartered accountants, accountants
• Warehouse staff
• Financial auditors
• Skilled professionals ready to adapt to the high-tech era
• Specialized labour in architecture and construction
• AI knowledge and digital skills
• Financial analysts
• UAV/USV assembly technicians
• Engineers
• Divers
• Fish processors and filleters
• Stone masons
• Office staff – electrical engineers
• Delivery drivers
• Oenologists and technicians – plumbers, electricians
• Technical department staff
• Secretarial staff, software programmers
• Administrative staff and legal assistants
• Labourers and customer service agents
• Secretaries
• Accountants
• Social media marketing, wine cellar salespersons
• Unskilled labourers
• Truck drivers and recycling workers
• Salespeople, specialised outdoor construction and gardening staff
• Pastry chefs
• Medical equipment technicians
• Welders, sheet metal workers, CNC press operators
• Architects, designers
• Builders, plumbers
• Construction site staff
• Engineers
• Metalwork and heavy steel construction workers (welders, assemblers, erectors)
• CNC operator – engraver
• Production engineers, electrical engineers, forklift operators
• Aluminium installers
• Nurses, occupational therapists, doctors
• Welders, fitters, electricians
• Mechanical engineers

It is worth noting that shortages of skilled labour remain at the top of the list of major problems faced by businesses in Limassol.

One in five respondents highlighted this issue among their top three challenges, and all indications suggest it is becoming a long-term concern.

Government departments and labour costs remained in second and third place respectively among reported concerns, while interest rate worries have subsided slightly, as the upward trend by banks has somewhat stabilised recently.

Access the full Business Barometer by the Limassol Chamber of Commerce and Industry here