The Central Bank of Cyprus (CBC) has released its definitive year-end projections, painting a picture of an economy that remains on a steady climb despite global headwinds. According to the December 2025 report, Cyprus is expected to see its GDP expand by 3.5% in 2025, a slight moderation from the revised 3.9% growth recorded in 2024.<\/p>\n
The primary engine of this growth continues to be robust internal demand. The CBC attributes this momentum to two key factors:<\/p>\n
Rising Disposable Income: Real household earnings are increasing, giving consumers more purchasing power.<\/p>\n<\/li>\n
Private Consumption: High levels of spending are supported by a resilient job market that has successfully withstood external shocks.<\/p>\n<\/li>\n<\/ol>\n
Looking further ahead, the CBC expects the economy to settle into a stable growth rhythm of 3% annually between 2026 and 2028.<\/p>\n
One of the most significant highlights of the forecast is the continued strengthening of the labor market. Unemployment is projected to fall to 4.5% in 2025, down from 4.9% last year.<\/p>\n
Positive Indicators: This decline aligns with the European Commission’s recent Economic Surveys, which show high employment expectations and a consistent drop in registered jobseekers.<\/p>\n<\/li>\n
The 4.5% Threshold: Economists at the CBC believe unemployment will stabilize at this 4.5% mark through 2028, a level effectively considered “full employment” within the context of the Cypriot economy.<\/p>\n<\/li>\n<\/ul>\n
Inflation (HICP) is set to undergo a remarkable transformation, plummeting to just 0.8% in 2025 from the 2.3% seen in 2024. This sharp deceleration is being driven by several unique global and regional factors:<\/p>\n
Deflationary Pressures: A cooling in both energy and non-energy industrial prices is the main driver.<\/p>\n<\/li>\n
Currency Impact: The euro\u2019s appreciation against the US dollar has effectively lowered the cost of imports.<\/p>\n<\/li>\n
The “China Effect”: A diversion of low-cost Chinese imports into the EU market has placed significant downward pressure on consumer prices in Cyprus.<\/p>\n<\/li>\n<\/ul>\n
While prices are expected to stay low in the immediate term, the CBC warns of a gradual return toward 2% inflation by 2027 as food prices normalize and energy deflation fades.<\/p>\n
| Year<\/td>\n | GDP Growth (%)<\/td>\n | Unemployment (%)<\/td>\n | Inflation (HICP) (%)<\/td>\n<\/tr>\n<\/thead>\n |
| 2024 (Revised)<\/td>\n | 3.9%<\/td>\n | 4.9%<\/td>\n | 2.3%<\/td>\n<\/tr>\n |
| 2025 (Forecast)<\/td>\n | 3.5%<\/td>\n | 4.5%<\/td>\n | 0.8%<\/td>\n<\/tr>\n |
| 2026<\/td>\n | 3.0%<\/td>\n | 4.5%<\/td>\n | 1.7%<\/td>\n<\/tr>\n |
| 2027<\/td>\n | 3.0%<\/td>\n | 4.5%<\/td>\n | 2.2%<\/td>\n<\/tr>\n |
| 2028<\/td>\n | 3.0%<\/td>\n | 4.5%<\/td>\n | 1.9%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Source: Stockwatch.com.cy<\/em><\/p>","protected":false},"excerpt":{"rendered":" The Central Bank of Cyprus (CBC) has released its definitive year-end projections, painting a picture of an economy that remains on a steady climb despite global headwinds. According to the December 2025 report, Cyprus is expected to see its GDP expand by 3.5% in 2025, a slight moderation from the revised 3.9% growth recorded in […]<\/p>","protected":false},"author":9,"featured_media":121447,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[211],"tags":[],"_links":{"self":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/121446"}],"collection":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/comments?post=121446"}],"version-history":[{"count":1,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/121446\/revisions"}],"predecessor-version":[{"id":121448,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/121446\/revisions\/121448"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/media\/121447"}],"wp:attachment":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/media?parent=121446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/categories?post=121446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/tags?post=121446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} |