Nicosia, Cyprus. The Central Bank of Cyprus (CBC) said Cyprus’ GDP growth is expected to decelerate to 3.5 per cent in 2025 from 3.9 per cent in 2024, while remaining robust in the medium term.
Growth outlook
The CBC forecast that GDP will grow by around 3 per cent per year during 2026 to 2028, citing sustained economic momentum. CBC governor Christodoulos Patsalides said the economy’s momentum indicates strong foundations and that the country shows flexibility and adaptability in responding to external pressures.
Debt, inflation and labour market indicators
According to the CBC’s December economic bulletin, the public debt-to-GDP ratio fell to 56.2 per cent in November 2025 from 65.8 per cent in November 2024. The bulletin reported unemployment at 4.5 per cent, while core inflation is projected to average 1.9 per cent during 2025 to 2028.
Eurostat unemployment data
Cyprus’ seasonally adjusted unemployment rate fell to 4.3 per cent in December 2025, according to Eurostat. The statistical office of the European Union said the euro area unemployment rate declined to 6.2 per cent in December 2025 from 6.3 per cent in November 2025 and was also lower than in December 2024. The EU unemployment rate stood at 5.9 per cent in December 2025, unchanged from both November 2025 and December 2024.
Eurostat estimated that 13,043,000 people were unemployed in the EU in December 2025, including 10,792,000 in the euro area. Compared with November 2025, unemployment fell by 94,000 people in the EU and by 61,000 people in the euro area.
How do the CBC’s growth projections for 2025 to 2028 compare with your expectations for Cyprus’ economy?
