The Cypriot economy demonstrated remarkable strength throughout 2025, concluding the year with a real term growth rate of 3.8%. According to the latest data released by the Statistical Service of Cyprus (Cystat) on Monday, March 2, 2026, the nation’s Gross Domestic Product (GDP) reached €30.52 billion in real terms, while at current prices, the figure climbed to €36.32 billion marking a 4.5% year on year increase.
The report highlights a particularly powerful finish to the year, with the fourth quarter alone witnessing a 4.5% jump compared to the same period in 2024.
The Engines of Growth: Tech and Tourism Lead the Way
The expansion was broad based, but several key sectors acted as the primary catalysts for the island’s upward trajectory. The Information and Communication sector continues to be a standout performer, reflecting Cyprus’s evolution into a regional technology hub.
Top Performing Sectors in 2025:
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Information and Communication: Sustained double digit momentum.
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Hotels and Restaurants: Capitalizing on a record-breaking tourism season.
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Construction: Driven by high value infrastructure and residential projects.
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Wholesale and Retail Trade: Strong domestic and vehicle repair activity.
Consumption and Trade: A Year of High Activity
The data reveals a surge in both government and private spending, alongside a healthy international trade balance. Government final consumption saw the sharpest rise at 6.7%, while exports of goods and services grew by 5.3%, reaching a total of €35.32 billion.
| Economic Indicator | 2025 Value | Annual Growth (%) |
| Government Consumption | €6.82 Billion | 📈 6.7% |
| Private Consumption | €20.65 Billion | 📈 3.7% |
| Gross Capital Formation | €7.35 Billion | 📈 2.3% |
| Total Exports | €35.32 Billion | 📈 5.3% |
| Total Imports | €34.04 Billion | 📈 4.9% |
Q4 2025: A Strong Finale
The final three months of 2025 provided a significant boost to the annual average. The seasonally adjusted GDP for the fourth quarter reached €7.76 billion, representing a 1.4% increase over the third quarter of the same year.
This late-year momentum was primarily fueled by the retail, technology, and hospitality sectors, underscoring the resilience of the Cypriot economy even as other European markets faced stagnation. The data suggests that Cyprus entered 2026 with considerable fiscal wind in its sails.
Source: Stockwatch.com.cy