Cliff on the ocean in Cyprus

Cyprus GDP Q2 2025

Cyprus: GDP growth accelerates in Q2

Economic momentum strengthens in Q2: A second release confirmed that GDP growth accelerated to 3.6% year on year in the second quarter, up from 3.0% in the first quarter. On a working-day and seasonally adjusted quarter-on-quarter basis, economic growth waned markedly to 0.5% in Q2, compared to the previous quarter’s 1.3% growth.

Public spending and tourism underpin GDP growth: The improvement was driven by faster expansions in public spending and exports. Public consumption surged 11.2% in Q2 (Q1: +0.1% yoy). Less positively, private consumption growth fell to 2.4% in Q2 (Q1: +2.5% yoy). Meanwhile, fixed investment growth moderated to 18.3% in Q2, below the 20.4% rate recorded in the previous quarter.

On the external front, exports of goods and services growth improved to 8.6% in Q2 (Q1: +6.8% yoy). The improvement was driven by a faster increase in services exports, as tourist arrivals strengthened in the quarter. Meanwhile, goods exports sank at a faster pace amid persistent trade turmoil. Lastly, imports of goods and services growth sped up to 7.2% in Q2 (Q1: +5.6% yoy).

Economic momentum to wane in 2025: The economy is seen growing at a slower pace in 2025 than in 2024, weighed down by cooling private spending growth. Still, it should remain among the fastest growing in the Euro area, driven by healthy tourist activity, a supportive fiscal stance and ECB monetary policy easing.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Email Team Member Linkedin Team Member Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Fullscreen Line Chart Globe Download Share