Cyprus Business Now: GDP forecast, unemployment, minimum wage, Gulf ties, CITEA
Moreover, the CBC forecast that GDP will grow by around 3 per cent per year during the period 2026 to 2028, reflecting sustained economic momentum.
CBC governor Christodoulos Patsalides said the momentum of the Cypriot economy indicates strong foundations, addinb that the country shows flexibility and adaptability in responding to external pressures.
According to the CBC’s December economic bulletin, the public debt-to-GDP ratio fell to 56.2 per cent in November 2025, down from 65.8 per cent in November 2024.
The bulletin also reported that unemployment stood at 4.5 per cent, while core inflation is projected at 1.9 per cent on average during 2025 to 2028.
The statistical office of the European Union said the euro area unemployment rate declined to 6.2 per cent in December 2025, down from 6.3 per cent in November 2025 and also lower than in December 2024.
Across the wider bloc, the EU unemployment rate stood at 5.9 per cent in December 2025, remaining stable compared with both November 2025 and December 2024.
Eurostat estimated that 13,043,000 people were unemployed in the EU in December 2025, of whom 10,792,000 were 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.
The figures showed that 22 out of 27 EU countries had a national minimum wage, with Denmark, Italy, Austria, Finland and Sweden remaining outside the system.
Cyprus was grouped with seven other countries where minimum wages ranged from €1,000 to €1,500 per month, alongside Greece at €1,027, Croatia at €1,050, Portugal at €1,073, Poland at €1,139, Lithuania at €1,153, Slovenia at €1,278 and Spain at €1,381.
At the lower end of the scale, eight EU countries recorded minimum wages below €1,000 per month, including Bulgaria at €620, Latvia at €780, Romania at €795, Hungary at €838, Estonia at €886, Slovakia at €915, the Czech Republic at €924 and Malta at €994.
According to the CBC, 53 per cent of household financial assets consisted of cash, deposits and loans at the end of September 2025.
The remaining composition of household assets showed 3 per cent invested in debt securities, 26 per cent in shares and 18 per cent in other financial instruments.
The CBC said household debt amounted to €19.9 billion at the end of September 2025, corresponding to 55 per cent of gross domestic product.
This household debt-to-GDP ratio remained unchanged compared with the previous quarter, according to the central bank.
In comparison with December 2016, the CBC said the household debt ratio has fallen sharply by around 62 per cent.
In the first half of 2025, card payments accounted for 74.5 per cent of the total number of non-cash payments in Cyprus, up 1.4 percentage points compared with the same period a year earlier. This was the second-highest share across the euro area.
At the same time, credit transfers represented 16.1 per cent of transactions, edging up by 0.3 percentage points year-on-year, while direct debits declined slightly to 4 per cent.
E-money payments also eased, accounting for 3.2 per cent of total transactions, down 0.6 percentage points.
Within the eurozone, Portugal recorded the highest share of card payments in the first half of 2025, at 75.7 per cent. Cyprus followed closely, while Greece ranked third with 73 per cent, ahead of Lithuania at 72.8 per cent.
In his first remarks as president, Malekkos thanked outgoing president Dimitris Nissiotis for his contribution, as well as CITEA members for the unanimous trust placed in him.
“During my presidency, my main priority is for members to feel the value that CITEA offers them in practice, through actions, participation, representation and substantial impact on the industry,” he said.
He described CITEA as entering a new phase, with a more active role in the field of information technology, including participation in artificial intelligence communities, support to the state and industry with know-how, and investment in the next generation through partnerships with schools.
The index reached 122.6 units in December 2025, based on 2021 as the base year set at 100 units. This represented an increase of 0.2 per cent compared with November 2025.
Compared with the corresponding month of the previous year, the index recorded an increase of 0.3 per cent.
For the period from January to December 2025, the index showed a decrease of 0.3 per cent compared with the same period of 2024.
Over the year 2025, the centre led and supported initiatives across the UAE and neighbouring Gulf markets, spanning trade, energy, manufacturing, technology, digital assets and innovation.
The activity coincided with closer political ties, culminating in the first official state visit of the UAE to Cyprus in December 2025.
Beyond their diplomatic dimension, the initiatives were designed to deliver concrete outcomes, strengthening bilateral cooperation, supporting the international expansion of Cypriot companies and showcasing Cyprus’ capabilities across strategic growth sectors.
A defining institutional milestone was the establishment of the Cyprus Business Council (CBC) in Dubai. Following months of preparatory work between Cypriot stakeholders and the CTC, the council was formally established on November 26, 2025, under the umbrella of Dubai Chambers.
Eurostat said that GDP in the euro area and the EU rose by 0.3 per cent in the fourth quarter of 2025 compared with the previous quarter, based on a preliminary flash estimate.
The data showed that in the third quarter of 2025, economic growth had also stood at 0.3 per cent in the euro area, while the EU recorded a slightly higher increase of 0.4 per cent.
Based on quarterly seasonally and calendar adjusted figures, Eurostat estimated that annual GDP growth for 2025 reached 1.5 per cent in the euro area and 1.6 per cent in the EU.
Eurostat cautioned that the flash GDP estimates are based on incomplete data and remain subject to further revisions.
The conference is regarded as one of the key international platforms aimed at deepening economic and investment ties between Cyprus and India.
According to a CYFA announcement, the association’s participation focused on positioning Cyprus as an international business and investment centre, while at the same time showcasing the administrative and corporate services sector.
In this context, CYFA also sought to promote its members, their services and expertise to an international audience, alongside Cyprus’ broader institutional and regulatory framework.
The forum takes place under the auspices of the Shipping Deputy Ministry of Cyprus and the Shipping Deputy Minister to the President, Marina Hadjimanolis, and in cooperation with the Cyprus Union of Shipowners (CUS) as lead sponsor. It is also supported by the Cyprus Shipping Chamber (CSC), alongside other key stakeholders of the Cypriot maritime cluster.
The event places Cyprus firmly in the spotlight as a maritime, energy and logistics hub, while also emphasising its role as an investment and business destination. International speakers and local decision-makers will exchange views on developments across shipping, finance and capital markets, alongside regulatory, geopolitical and operational challenges shaping the industry.
The index relies on 2021 as the base year, which the statistical service set at 100 units.
This significant monthly surge contributed to a broader upward trend for the period between January 1, 2025, and November 30, 2025, during which the index recorded an overall increase of 3.7 per cent compared to the corresponding period in 2024.
The manufacturing sector served as a primary driver of growth, registering a substantial increase of 9.6 per cent when measured against November 2024.
Further gains across the industrial landscape were observed in mining and quarrying, which saw a dramatic rise of 32.5 per cent, and the water supply and materials recovery sector, which grew by 4.7 per cent.
In contrast, a negative change was observed in the electricity supply sector, which experienced a slight contraction of 0.9 per cent during the same month.