The Cypriot industrial sector maintained its upward trajectory throughout 2025, concluding the year with a robust 5% annual growth in its total turnover. Fresh data from the Statistical Service of Cyprus (Cystat) indicates that the Industrial Turnover Index reached 139.8 points in December, a nearly 5% jump compared to the same month in 2024.
This sustained expansion reflects a resilient industrial base that has successfully navigated a year of shifting global demands and localized economic pressures.
Manufacturing: The Engine of Growth
The manufacturing sector emerged as the clear leader in 2025, acting as the primary catalyst for the island’s industrial success. By December, the manufacturing index climbed to 146.8 points, representing a significant 7.1% year on year increase.
While general manufacturing was strong, certain specialized niches saw explosive, double digit growth:
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Transport & Machinery: The manufacture of motor vehicles, machinery, and transport equipment surged by an incredible 42.8%.
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Wood & Furniture: Wood processing grew by 23.8%, while furniture production and equipment installation rose by 17%.
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Chemicals & Pharmaceuticals: Production of refined petroleum and medicines saw a healthy 11.6% increase.
A Tale of Two Markets: Exports vs. Domestic
The data highlights a healthy balance between local consumption and international trade. In December, domestic industrial turnover rose by 4.4%, while the export-oriented segment performed even better, posting a 7.9% monthly gain. This suggests that ‘Made in Cyprus’ products are gaining significant traction in foreign markets.
Sectoral Divergence
Despite the overall positive trend, the landscape remained mixed. Mining and quarrying contributed positively with a 6% rise, but the energy and utility sectors faced headwinds. Electricity supply turnover dipped by 3.8%, and the water supply and materials recovery sector saw a contraction of 6.8%.
The most notable decline within the manufacturing umbrella was in electronic and optical equipment, which plummeted by 21.6% in December, highlighting a specific area of volatility in the tech-manufacturing space.
Resilience in 2026
The 5% annual turnover increase aligns with Cyprus’s broader economic narrative of resilience. As the island enters 2026, the industrial sector’s ability to pivot toward high growth manufacturing and export markets provides a stable buffer against regional geopolitical uncertainty.
Source: news.cyprus-property-buyers.com