Cyprus registered the third-largest annual GDP increase in the European Union during the second quarter of 2025, according to Eurostat figures published on Friday. The country’s GDP grew by 3.3% year-on-year, behind only Ireland (18%) and Bulgaria (3.4%).

On a quarterly basis, Cyprus recorded a 0.5% growth compared to the first quarter of 2025.

Across the EU, seasonally adjusted GDP rose by 1.5% in the euro area and 1.6% in the EU in Q2 2025 compared to the same quarter of 2024. Relative to Q1 2025, GDP increased by 0.1% in the euro area and 0.2% in the EU. In the previous quarter, GDP had expanded by 0.6% in the eurozone and 0.5% in the EU.

Luxembourg was the only EU country to record an annual GDP decline (-0.2%). Compared to the first quarter of 2025, contractions were observed in Finland (-0.4%), Germany (-0.3%), and Italy (-0.1%).

In the United States, GDP grew by 2.1% year-on-year in Q2 2025 and by 0.8% quarter-on-quarter.

At the same time, Eurostat data shows that Cyprus posted the fifth-largest employment increase in the EU, with a 1.8% rise in Q2 2025 compared to the same quarter of 2024. On a quarterly basis, employment in Cyprus rose by 0.5%, marking the fourth-largest increase in the EU.

According to Eurostat, a total of 219.9 million people were employed in the EU during Q2 2025, including 171.6 million in the eurozone.

Eurostat notes that combining GDP and employment data provides insight into labor productivity. In Q2 2025, productivity per person employed rose by 0.8% in the eurozone and 1.2% in the EU compared to the same period in 2024.

When measured by hours worked, productivity increased by 1.1% in the eurozone and 1.5% in the EU.

Cyprus ranked third in the EU for productivity growth based on hours worked, recording a 2.2% annual increase, behind Malta and Luxembourg. However, compared to Q1 2025, Cyprus registered a slight 0.2% decline.