Cyprus has cemented its position as one of the fastest-growing economies in the European Union, ending 2025 on a high note. According to a flash estimate released by the Statistical Service of Cyprus (Cystat) on Friday, February 13, 2026, the nation’s seasonally adjusted Gross Domestic Product (GDP) soared by 4.5% in the fourth quarter compared to the same period in 2024.
This performance not only marks an acceleration from the 3.6% growth recorded in the third quarter but also represents the strongest expansion since late 2022.
A Regional Leader
The figures place Cyprus well ahead of its Eurozone peers. While the broader Euro Area and the EU recorded modest year-on-year growth rates of 1.3% and 1.5% respectively, Cyprus’ 4.5% surge highlights a resilient domestic economy that continues to defy wider continental stagnation.
Quarterly Momentum in 2025:
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Q1: +1.3%
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Q2: +0.8%
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Q3: +0.9%
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Q4: +1.4% (Current Estimate)
The Engines of Growth
Government data attributes this robust performance to a “triple threat” of high-performing service sectors. These industries have successfully capitalized on strong domestic demand and a booming digital landscape.
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Commerce & Logistics: “Wholesale and Retail Trade; Repair of Motor Vehicles” remained a cornerstone of economic activity.
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The Digital Boom: The “Information and Communication” sector continues its rapid expansion, fueled by the island’s emergence as a Mediterranean tech hub.
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Tourism & Hospitality: “Hotels and Restaurants” saw significant gains, benefiting from extended tourist seasons and high-value visitors.
Looking Ahead: The 2026 Outlook
While the flash estimate provides an early, optimistic snapshot based on roughly 45 days of preliminary data, economists are cautiously watching to see if this momentum carries into the new year.
Analysts from the European Commission and the IMF have previously projected that growth might moderate slightly in 2026 as global trade slows. However, with the 2025 results significantly outperforming initial forecasts, the Cyprus government enters the next fiscal cycle with a substantial buffer and increased international credibility.
The final, more detailed National Accounts for the fourth quarter are expected to be published on March 2, 2026.
Source: Stockwatch.com.cy