FX.co ★ Cyprus Q1 GDP Growth Confirmed at 3%

The Cypriot economy experienced a 3% year-on-year growth in the first quarter of 2025, corroborating preliminary estimates and slightly surpassing the 2.9% growth observed in the previous quarter. On the demand side, there was a deceleration in the growth of private consumption, which saw a rise of 1.5% compared to 1.8% in Q4. Government expenditure also slowed, increasing by 1% compared to the previous 3.4%, and fixed investment growth dropped significantly to 19.3% from the previous 67.1%. The contribution of net trade was negative, with exports growing by 4.5%, up from 2.1%, while imports increased at a more rapid rate of 6.8%, albeit lower than the previous 8.7%. From the production perspective, output gathered momentum in key sectors, including manufacturing, which grew by 3.3% compared to 1.7% in Q4; information and communication, with a rise to 5.3% from 4.3%; professional, scientific, and technical activities, which increased by 2.3% from 1.7%; and arts, entertainment, and recreation, which grew by 6% compared to 5.1%. On a quarter-by-quarter basis, GDP rose by 1.3%, an uptick from the 0.2% recorded in Q4, marking the fastest growth rate since the first quarter of 2024.