University of Cyprus study reveals uneven productivity growth in the national economy

A recent study by the Economic Research Centre of the University of Cyprus analyzes the productivity of the Cypriot economy over the three-decade period from 1996 to 2025. While the nation recorded an average annual labor productivity growth rate of 1.44%, the report highlights significant structural disparities across various economic sectors.

Data indicates that productivity gains are concentrated in specific industries, with Information and Communication leading at 5.27% annual growth. Other sectors showing positive trends include Financial and Insurance Activities (2.33%) and Wholesale and Retail Trade (1.61%). Conversely, traditional sectors face stagnation or decline, as evidenced by a 0.90% average annual contraction in the Agriculture, Forestry, and Fishing sector.

The findings suggest that despite long-term improvements, the uneven distribution of these gains poses a risk to overall competitiveness. Researchers emphasize the necessity of implementing targeted economic policies to address these gaps and improve living standards across all industries. The analysis, which also examines Total Factor Productivity (TFP) trends, serves as a basis for evaluating future economic strategies to bridge the divide between high-performing sectors and those in decline.