Nicosia, Cyprus. KPMG Cyprus partner Christophoros Anayiotos said Cyprus’ technology sector has become a major engine of growth, contributing €5.9 billion, or 16.2% of GDP, in 2025. He presented the findings during a keynote address at the TechIsland Summit on Thursday.
Assessment presented at TechIsland Summit
Anayiotos’ keynote address, titled ‘The Impact of Tech and Innovation in Cyprus’, outlined KPMG’s 2025 economic impact assessment of the technology sector, including its contribution to GDP, employment, investment and Cyprus’ competitiveness. He said the figures show the sector is no longer emerging but central to the country’s economic model.
Gross Value Added and sector breakdown
According to the assessment, the technology sector’s total Gross Value Added (GVA) in Cyprus for 2025 was €5.5 billion, representing 17% of the country’s total GVA. The contribution was driven mainly by Information and Communication Technology at €4.1 billion, followed by professional, scientific and technical activities at €875 million, and financial and insurance activities at €604 million.
Direct and wider economic impact
Anayiotos said the sector’s direct GVA rose to 17% of total GVA in 2025 from 16% in 2024. He added that when indirect and induced spillover effects are included, the sector’s total economic impact doubles to €11.9 billion.
In GDP terms, the sector contributed €5.9 billion directly in 2025, equivalent to 16.2% of Cyprus’ GDP, up from 15.5% in 2024. Including wider knock-on effects across the economy, the total GDP impact reached €11.9 billion.
Employment growth and workforce composition
Anayiotos said total employment in the technology sector increased at a compound annual growth rate of 9.7% between 2016 and 2025, reaching 48,200 employees last year. Of these, 31,700 were Cypriot nationals, 4,100 came from other EU countries, and 12,400 were non-EU nationals.
How do you think the technology sector’s growth will affect Cyprus’ wider economy and labour market?
