Cyprus’ economy grew by 4.5% year-on-year in the fourth quarter of 2025, up from 3.6% in the previous quarter and in line with preliminary estimates. This was the fastest pace of expansion since Q4 2022, driven primarily by wholesale and retail trade, repair of motor vehicles, information and communication, and accommodation and food services, which together grew by 7.2%.
Construction also recorded robust growth, expanding by 9.2%, while manufacturing output rose by 4.7%.
On the expenditure side, final consumption expenditure increased by 4.0%, supported by a 6.4% rise in government consumption and a 3.3% increase in household spending. Net trade made a positive contribution to growth, as exports of goods and services rose by 4.4%, outpacing a 2.7% increase in imports. In contrast, gross fixed capital formation declined sharply, falling by 15.2%.
Quarter-on-quarter, GDP expanded by 1.4%, the strongest quarterly growth since Q1 2024 and an acceleration from 0.9% in Q3. For 2025 as a whole, GDP grew by 3.8%.
