Cyprus economy shows high growth rates amid cost-of-living concerns

Revised national accounts indicate that Cyprus has maintained one of the two highest economic growth rates in the European Union for three consecutive years. According to government figures, the economy expanded by 6% in 2023, 6.6% in 2024, and is projected to grow by 4.8% in 2025. This growth significantly outpaces the EU-wide and eurozone averages.

President Nikos Christodoulides has linked this economic performance to a strong fiscal position and a budget surplus, which he states enables investments in healthcare, education, and social welfare. He also highlighted the government's ability to implement tax reforms and pension increases due to responsible fiscal management.

However, the economic data presents a complex picture for citizens. While median earnings have reportedly risen by 15%, statistical data shows that half of the workforce in Cyprus earns gross monthly salaries of up to €1,953. High costs for housing, energy, and essential goods continue to pressure household disposable income. Additionally, fuel prices in Cyprus rose by 24.6% year-on-year in September, though the monthly increase remained lower than the EU average.