Cyprus’s economy continued its steady expansion in the third quarter of 2025, with the seasonally adjusted Gross Domestic Product (GDP) increasing by 3.6% year-on-year, according to preliminary estimates released on Friday by the Cyprus Statistical Service.

Compared to the previous quarter, GDP growth recorded a 0.9% quarterly rise, reflecting sustained momentum in key sectors despite broader regional economic challenges.

The positive growth rate is primarily attributed to robust performance in Wholesale and Retail Trade, the Repair of Motor Vehicles, as well as the Information and Communication sectors. The Hotels and Restaurants sector — a key pillar of the Cypriot economy closely tied to tourism — also made a significant contribution, boosted by strong visitor arrivals and increased domestic spending.

While external factors such as inflationary pressures and energy costs continue to weigh on European economies, Cyprus’s balanced growth suggests resilience and diversification in its economic structure.

Analysts note that maintaining a stable 3.6% growth rate, in line with the previous quarter, indicates a healthy economic trajectory heading into the final quarter of 2025.