Cyprus ranked among the lowest-performing EU countries in business investment in 2024, with a rate of 16 per cent, according to a report from Eurostat.

The figure places Cyprus alongside Ireland at the lower end of the bloc, significantly below the EU’s higher-performing economies.

In business terms, the investment rate measures a company’s “plough-back” ratio, showing the portion of its operating profits (Gross Value Added) that is spent on capital expenditures (CapEx) like new machinery, technology, and buildings rather than being distributed or saved.

Across the European Union, the business investment rate for non-financial corporations stood at 21.8 per cent in the fourth quarter of 2025, marking its lowest level since the third quarter of 2015.

The data reflects a broader downward trend in corporate investment across the bloc in recent years.

Eurostat data shows that since 2014, the EU’s non-financial corporation investment rate has followed two distinct patterns, with notable fluctuations over time.

Between 2014 and 2018, the investment rate increased steadily from 22 per cent to nearly 24 per cent, signalling a period of strengthening corporate investment activity.

However, from 2021 onwards, the trend reversed, with investment rates declining almost continuously, eventually reaching 21.8 per cent by the fourth quarter of 2025.

The statistical authority attributed earlier spikes in investment to specific factors linked to global economic dynamics.

“The sharp increases in the second quarter of 2015, 2017 and 2019, followed by a similar trend in the fourth quarter of 2019 and the first quarter of 2020, were largely due to surges in intellectual property imports of certain countries, driven by globalisation dynamics,” Eurostat said.

At the national level, the latest available annual data for 2024 highlights significant disparities across EU member states.

Hungary recorded the highest business investment rate at 28.4 per cent, followed closely by Croatia at 28.3 per cent and the Czech Republic at 27.6 per cent.

Belgium and Sweden also posted strong figures, with rates of 27 per cent and 26.9 per cent respectively.

In contrast, Cyprus remained among the weakest performers, sharing a 16 per cent investment rate with Ireland.

Luxembourg recorded the lowest rate in the EU at 15.9 per cent, followed by the Netherlands at 16.7 per cent and Malta at 16.8 per cent.

The figures underline the persistent gap in business investment across the European Union, with Cyprus continuing to lag behind higher-investing economies.

The findings also reflect the challenges facing smaller and service-oriented economies in maintaining strong levels of corporate investment amid shifting global conditions.