Cyprus continued to record a positive business activity balance in 2023, according to preliminary data from Eurostat, with more companies being established than shutting down during the year.

The country’s business birth rate stood at 9.67%, while business deaths reached 7.17%, placing Cyprus close to the EU average business birth rate of 10.5%.

With more firms opening than closing, Cyprus remains in the majority of EU countries showing net business creation. The data underscore the island’s steady post-pandemic recovery, as well as the growing confidence of local entrepreneurs and investors.

Across the European Union, more than 33 million active businesses operated in 2023. Of these, approximately 3.5 million were newly established, while 2.8 million ceased operations, reflecting a net increase and confirming a generally positive EU trend.

Eurostat’s figures show that in most EU member states, business “births” outpaced “deaths.” Only seven countries—Bulgaria, Denmark, Germany, Estonia, Ireland, Poland, and Slovakia—recorded negative balances, meaning more businesses closed than opened.

The highest business birth rates were registered in:

• Lithuania (19.6%)

• Malta (17.1%)

• Portugal (16.8%)

Meanwhile, the lowest birth rates were observed in:

• Austria (6.2%)

• Denmark (7.3%)

• Italy (7.8%)

Conversely, the highest business death rates were in:

• Estonia (27.5%)

• Ireland (16.6%)

• Bulgaria (16.5%),

while the lowest were seen in Hungary (2.6%), Greece (3.4%), and the Netherlands (5.0%).

At the EU level, the proportion of high-growth enterprises—those increasing their workforce by more than 10% annually over three consecutive years—rose to 10.5% in 2023, up from 9.2% in the 2019–2022 period.

This represents about 180,000 high-growth companies across Europe, reflecting a broader trend of increasing productivity and business dynamism, from start-ups to expanding SMEs.