The Cypriot economy demonstrated exceptional performance in the second quarter of 2025, ranking among the top five EU member states for both Gross Domestic Product (GDP) and employment growth. According to data published by Eurostat, the country’s economic expansion significantly outpaced the European average.
Economic Growth Surpasses EU Average
Cyprus recorded the third-highest annual GDP growth in the European Union, with its economy expanding by 3.3% compared to the same quarter in 2024. This rate was more than double the EU average of 1.6% and the euro area average of 1.5%. Only Ireland (18%) and Bulgaria (3.4%) posted higher annual growth rates.
Compared with the previous quarter, Cyprus’s GDP increased by 0.5%. This performance stands in contrast to some of Europe’s largest economies, such as Germany (-0.3%) and Italy (-0.1%), which recorded quarterly decreases.
Robust Job Market Expansion
The country’s job market also showed strong momentum. Employment grew by 1.8% on an annual basis, the fifth-highest rate in the EU. The quarterly employment increase was 0.5%, which was the fourth-highest among member states.
The combination of GDP and employment growth provides an estimate of labor productivity. Based on hours worked, Cyprus’s productivity-adjusted GDP growth was 2.2% year-on-year, also ranking third-highest in the EU.
Source: stockwatch.com.cy