Economic Growth Steady, Inflation Shows Signs of Easing

Cyprus’s economy continues its positive trajectory, with real GDP expanding by 3.6% in the first half of 2025. Growth is driven by private consumption, rising investment, and a strong performance in services, including tourism, ICT, and exports. Employment is up, and unemployment remains low at around 4.6%, indicating a stable labor market.

Despite growth, inflation shows signs of moderating. Consumer prices have begun to ease from previous highs, providing households with more predictable purchasing power. Public debt is gradually declining relative to GDP, improving fiscal sustainability and signaling a healthier macroeconomic environment.

The outlook remains positive for 2025–2027. GDP growth is projected at 2.4–3% annually, inflation is expected to stabilize near 2%, and public finances are on a stable path. This combination of growth and moderate inflation underpins investor confidence, encouraging both domestic and foreign investment. Economic indicators suggest Cyprus is navigating global economic challenges effectively while sustaining steady domestic expansion.