Cyprus’ economic growth accelerated to 3 per cent in the first quarter of 2025, outperforming both the eurozone and EU averages, according to a preliminary estimate by the state statistical service.

In response to the data, the Finance Ministry stressed that the Cypriot economy continues to display significant resilience compared with other European economies, effectively managing the risks posed by the external environment.

In an official statement, the ministry said that “the growth rate of 3 per cent in the first quarter of 2025 is significantly higher than the European average” and “more than double the average of the eurozone and the EU, which stand at 1.2 per cent and 1.4 per cent respectively”.

“With such a growth rate amid an extremely uncertain global economic climate, it is anticipated that the economic slowdown and impact of tariffs in 2025 will not be as pronounced for Cyprus as they will be for other EU countries,” the ministry added.

The Finance Ministry also stated that “these figures confirm that the Cypriot economy is entering this period of increased uncertainty” with a “relatively high growth rate”.

It explained that the instability is due to “geopolitical developments and particularly the expected imposition of tariffs by the United States“.

The ministry also stressed that “a prudent and disciplined fiscal policy and economic management by the government, combined with the implementation of the National Recovery and Resilience Plan, will contribute to the resilience of the Cypriot economy, so that Cyprus can address challenges in the external environment”.

Earlier, the statistical service reported that the economy’s annual growth rate reached 3 per cent in the first quarter of 2025, compared to the same period in 2024. This followed a growth rate of 2.6 per cent recorded in the fourth quarter of 2024.

After adjusting for seasonal fluctuations and working days, the quarter-on-quarter growth rate stood at 1.3 per cent compared with the fourth quarter of 2024.

The statistical service attributed the positive GDP growth primarily to the sectors of wholesale and retail trade, repair of motor vehicles, information and communication, construction, and accommodation and food service activities.