Cyprus records 3.8 percent GDP growth in 2025

According to data from Eurostat, the economy of Cyprus grew by 3.8 percent in 2025, significantly exceeding the European Union average growth rate of 1.5 percent. This annual growth performance ranks Cyprus as one of the fastest-growing economies in the EU. In the fourth quarter of 2025 specifically, Cyprus recorded a 1.4 percent increase in GDP compared to the previous quarter. This quarterly figure positions Cyprus alongside Croatia as the third-highest growth rate in the bloc for that period, behind Malta at 2.1 percent and Lithuania at 1.7 percent. While the overall EU annual growth accelerated from 1.1 percent in 2024 to 1.5 percent in 2025, some member states, including Ireland, Romania, Estonia, and Luxembourg, reported economic contractions in the final quarter of the year. The data confirms a broader, albeit slowing, trend of economic expansion across the euro area and the EU during the same period.