The Cypriot economy presented a mixed but steady performance through the first eight months of 2025, according to the “Monthly Economic Developments” bulletin released by the Statistical Service of Cyprus (Cystat). While the tourism sector showed robust growth, the construction sector experienced a significant slowdown.
Growth Drivers: Tourism and Manufacturing
The tourism industry was a standout performer, with arrivals increasing by 10.0% in the January to August 2025 period. A total of 3.03 million tourists visited the island, up from 2.76 million during the same period in 2024.
This positive momentum was supported by the manufacturing production index, which recorded a 3.5% increase for the period of January to July 2025 compared to the previous year.
Areas of Contraction and Concern
In contrast, the construction sector showed signs of cooling. The total area of building permits authorized from January to June 2025 decreased by 12.4% compared to the first half of 2024, falling to 1.43 million square meters.
The trade deficit also widened. While total exports of goods grew by 2.8%, this was far outpaced by a 14.2% surge in total imports of goods, which reached €8.88 billion.
Domestic Economic Indicators
Other domestic indicators showed mild activity. The Consumer Price Index (inflation) remained subdued, posting a very slight increase of 0.5% for the January-August period.
Registrations of motor vehicles saw a marginal overall increase of 0.8%. However, this figure masks a 3.4% decrease in private saloon cars, which was offset by a 2.6% rise in light goods vehicles.
Cystat on Data and Innovation
Cystat released the bulletin ahead of World Statistics Day (October 20), reaffirming its commitment to ensuring the quality, independence, and transparency of its data. The service noted its continued investment in innovative methods, including artificial intelligence and new data sources, to promote statistical literacy and meet the growing needs of users.
Source: Stockwatch.com.cy