The Cypriot economy demonstrated a powerful and broad-based expansion throughout 2025, with key sectors from tourism to heavy industry hitting significant milestones. According to the “Monthly Economic Developments” bulletin released on Tuesday, February 17, 2026, by the Statistical Service of Cyprus (CyStat), the island saw upward trends in almost every major economic indicator, signaling a robust recovery and sustained momentum.
The report, which synthesizes data up to December 2025, paints a picture of a resilient domestic market successfully navigating global headwinds.
The Tourism Gold Rush
The standout performer of the year was undoubtedly the tourism sector, which shattered previous records. In 2025, Cyprus welcomed over 4.53 million visitors, a staggering 12.2% increase compared to the 4.04 million arrivals in 2024. This surge was bolstered by strong demand from the UK, Israel, and Germany, providing a massive liquidity injection into the local hospitality and retail sectors.
Real Estate and Construction Fever
Building activity reached “fever pitch” levels, particularly in the residential sector. The total area authorized for building permits grew by 30.7%, reaching over 2.6 million square meters.
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Residential Focus: Apartment block permits saw the highest growth, as developers rushed to meet the soaring demand for housing in urban centers like Limassol and Nicosia.
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Economic Value: Beyond physical area, the total value of these authorized projects jumped by nearly 28%, reflecting a shift toward higher-value developments.
Consumer Confidence and the Automotive Market
A clear sign of rising household confidence was the notable increase in vehicle acquisitions. Total motor vehicle registrations reached 52,508, a 5.8% rise year-on-year.
| Vehicle Category | 2025 Registrations | Annual Growth |
| Private Saloon Cars | 35,367 | 📈 3.2% |
| Light Goods Vehicles | 4,959 | 📈 6.9% |
| Total (All Types) | 52,508 | 📈 5.8% |
This increase in private and commercial transport underscores both personal wealth growth and expanded business logistics.
Stable Prices and Industrial Output
Despite global inflationary fears, Cyprus managed a remarkably stable price environment. The Consumer Price Index (CPI) rose by a negligible 0.1% over the course of 2025, effectively maintaining the purchasing power of the local population.
Simultaneously, the “engines of production” remained busy. Manufacturing output grew by 4.4% through November, driven largely by the production of non-metallic mineral products (construction materials) and furniture.
Trade and Global Integration
Cyprus also deepened its footprint in international trade. Both sides of the balance sheet grew significantly:
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Total Imports: Reached €13.55 billion (+7.7%), fueled by the need for raw materials and consumer goods.
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Total Exports: Rose to €5.55 billion (+7.0%), led by pharmaceuticals and food products.
Source: Stockwatch.com.cy