Cyprus’s economic expansion remained strong in the third quarter of 2025, with the Gross Domestic Product (GDP) growth rate estimated at a steady 3.6% in real terms (seasonally adjusted) compared to the same period in 2024. The figure, released by the Statistical Service (Cystat), confirms the economy’s sustained momentum, largely driven by key service sectors.
Key Sectors Propel Growth
The positive annual growth rate is primarily attributed to robust performance across domestic trade, hospitality, and the digital economy. The major contributing sectors under the production approach for GDP estimation were:
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Wholesale and Retail Trade, Repair of Motor Vehicles: Reflecting strong domestic consumption and commercial activity.
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Information and Communication (ICT): Highlighting the continued growth and international appeal of Cyprus’s technology and services hub.
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Hotels and Restaurants: Demonstrating a buoyant tourism sector performance during the peak summer months.
The total value of the GDP in the third quarter stood at €7,645.9 million.
Quarterly Momentum
On a sequential basis, the economy maintained positive momentum. The GDP growth rate in the third quarter of 2025 rose by 0.9% compared to the second quarter of the year. This steady acceleration suggests resilience in the face of broader regional economic challenges.
The sustained 3.6% annual growth rate positions Cyprus favorably compared to the European Union average, confirming the dynamic and service-driven nature of the island’s economy.
Source: Stockwatch.com.cy