Economic growth is stable in the third quarter of 2025

Cyprus becomes second-fastest-growing euro area economy: Cyprus' GDP expanded 3.6% on a year-on-year basis in Q3, unchanged from the previous quarter's reading and a flash estimate published in mid-November. This made Cyprus the fastest-growing economy in the EU in Q3, after Ireland, where GDP growth is inflated by multinationals. On a working-day and seasonally adjusted quarter-on-quarter basis, the economy expanded 0.9% in Q3, following 0.7% growth in the previous quarter.

Private consumption and exports accelerate: Compared to the previous period's data, figures in Q3 improved for private consumption (+5.4% on a year-on-year basis vs +2.9% in Q2), exports of goods and services (+6.7% vs +0.4% in Q2) and imports of goods and services (+8.0% vs +0.8% in Q2). In contrast, readings softened for government consumption (+2.5% vs +6.8% in Q2) and fixed investment (-2.6% vs +10.6% in Q2).

GDP growth to be the second-fastest in euro area in 2026: Our Consensus is for GDP growth to slow in 2026 from 2025’s projected level amid weaker expansions in private consumption and exports. However, strong tourism—which accounts for around 15–20% of employment and GDP, directly and indirectly—and an investment boost from Next Generation EU funds should allow Cyprus to maintain its current position as the euro area’s second-fastest growing economy. The health of the EU and UK economies—both key sources of tourist arrivals—is a key factor to watch.

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Cypriot private consumption projections for the next ten years from a panel of 5 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable private consumption forecast available for Cypriot private consumption.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Cypriot private consumption projections.

Want to get access to the full dataset of Cypriot private consumption forecasts? Send an email to info@focus-economics.com.