In March 2025, economic sentiment in Cyprus remained stable, with the Economic Sentiment Indicator (ESI-CypERC) maintaining the high level reached in February, according to the Economics Research Centre of the University of Cyprus (CypERC).

Based on business and consumer surveys conducted by CypERC, the Services Confidence Indicator increased marginally in March. This was attributed to a more favourable assessment by firms of their recent business situation and turnover. However, expectations for future turnover were revised downwards.

The Retail Trade Confidence Indicator also improved, reflecting more optimistic views on recent and anticipated sales.

Conversely, the Construction Confidence Indicator declined due to firms adjusting their employment plans downward.

Similarly, the Industry Confidence Indicator fell, driven by more negative views on current order books and the stock of finished products. This decline occurred despite improved expectations for production.

The Consumer Confidence Indicator rose slightly in March. Consumers expressed more optimistic expectations regarding their personal financial situation and the overall economic outlook in Cyprus. Their attitudes toward major purchases also remained positive.

Finally, the Economic Uncertainty Indicator for Cyprus decreased for the third consecutive month, primarily due to reduced uncertainty among consumers and firms across most sectors, with the exception of services.