The Cyprus economy recorded a 3.4% growth rate in 2024, according to the Statistical Service of Cyprus. The Gross Domestic Product (GDP) increase was measured in real terms, while in current prices, the annual percentage change in GDP reached 6.6%.

According to production-based GDP calculations, the positive growth rate was primarily attributed to: Hotels and Restaurants, Information and Communication, Construction, and Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles.

In the fourth quarter of 2024, the economy maintained a positive growth rate of 2.6% compared to the same quarter in 2023. Adjusted for seasonal fluctuations and working days, the growth rate stood at 2.9%.

The primary contributors to this expansion included: Hotels and Restaurants, Wholesale and Retail Trade, Repair of Motor Vehicles, and Information and Communication.

However, the Construction sector experienced negative growth in the last quarter of the year.

Preliminary fiscal results prepared by the Statistical Service indicate a general government surplus of €1.507 billion (4.5% of GDP) in 2024, compared to €631.5 million (2.0% of GDP) in 2023.

Between January and December 2024, total government revenue increased by €1.07 billion (+7.8%), reaching €14.83 billion, up from €13.76 billion in 2023.

• Taxes on production and imports rose by €244.4 million (+5.5%)
• Net VAT revenue increased by €166.2 million (+5.6%), reaching €3.14 billion
• Income and wealth taxes saw a €545.2 million (+16.7%) rise, reaching €3.81 billion
• Interest and dividends collected increased by €6.1 million (+4.4%), reaching €143.6 million
• Revenue from services grew by €240 million (+28.1%), reaching €1.09 billion
• Social contributions increased by €119.5 million (+2.7%), reaching €4.5 billion

However, capital transfers declined by €137.5 million (-38.4%), amounting to €220.4 million in 2024.

Total government spending rose by €197.4 million (+1.5%), reaching €13.33 billion in 2024.

• Intermediate consumption increased by €205.6 million (+15.8%)
• Employee compensation (including public sector pensions) grew by €269.4 million (+7.5%), reaching €3.86 billion
• Social benefits increased by €366.2 million (+7.4%), totaling €5.3 billion
• Interest payments rose by €25.7 million (+6.3%), reaching €433.9 million

On the other hand, some expenditure categories decreased:

• Subsidies fell by €5.7 million (-3.6%), totaling €153.4 million
• Current transfers dropped by €282.7 million (-24.2%), reaching €887.7 million
• Capital account spending declined by €381.2 million (-24.5%), amounting to €1.17 billion

The Retail Trade Turnover Index, excluding motor vehicles, showed an annual increase of 4.8% in January 2025, compared to the same month in 2024.

In terms of sales volume, the index rose by 2.6% year-over-year.

According to the Travelers' Survey conducted by the Statistical Service of Cyprus, tourism revenue in December 2024 reached €86.9 million, marking a 17% increase compared to €74.3 million in December 2023.

For the entire year of 2024, total tourism revenue amounted to €3.2 billion, up from €2.99 billion in 2023, reflecting a 7.3% increase.

Per Capita Tourist Spending:

• The average spending per tourist in December 2024 was €653.27, up 8.7% from €600.79 in December 2023.
• British tourists, representing 23.7% of total arrivals in December, spent an average of €64.12 per day.
• Israeli tourists (17.4% of total arrivals) spent €162.55 per day.
• Polish tourists (9.4% of total arrivals) spent €72.17 per day