Cyprus final 4Q GDP rises 1.4% q/q

Cyprus final 4Q GDP rises 1.4% q/q

Cyprus Reports 1.4% Quarterly GDP Growth in Fourth Quarter of 2025

Cyprus's economy expanded by 1.4% year-over-year in the fourth quarter of 2025, according to final national accounts data released by the Cypriot statistical authority. This marks a notable acceleration from previous estimates and reflects improved economic momentum toward the end of the year.

The growth follows a series of quarterly revisions, with initial reports indicating a 1.2% rise, which was subsequently adjusted upward to 1.4% in the final reading. The revision underscores stronger-than-anticipated performance in key sectors, including tourism, construction, and public investment, which have been central to Cyprus's post-pandemic recovery efforts.

The fourth-quarter acceleration builds on a mixed performance in earlier 2025, where growth remained constrained by global trade uncertainties and domestic fiscal adjustments. However, improved consumer confidence, increased infrastructure spending, and a rebound in tourist arrivals contributed to the upward revision. Analysts note that the resilience of service-sector activity, particularly in hospitality and retail, played a critical role in sustaining growth.

While the 1.4% annualized rate represents a positive trend, economists emphasize that Cyprus faces ongoing challenges, including inflationary pressures and reliance on external demand. The Central Bank of Cyprus has maintained a cautious monetary policy stance, balancing growth objectives with price stability.

Looking ahead, the government has prioritized diversifying the economy and reducing vulnerabilities through structural reforms. Final Q4 data reinforces the need for sustained investment in innovation and green energy to ensure long-term resilience.

For investors, the latest GDP figures highlight Cyprus's gradual return to stronger growth, though risks from global economic shifts and domestic fiscal constraints remain relevant considerations.

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