Cyprus revises economic growth forecasts amid rising energy costs

Cyprus has recorded significant economic growth, with revised data for 2025 placing the real GDP growth rate at 4.8%, up from an initial estimate of 3.8%. Revised figures also show growth of 6.0% in 2023 and 6.6% in 2024, consistently ranking the country among the top two fastest-growing economies in the European Union. Despite these figures exceeding the EU average of 1.4% and the eurozone average of 1.2% for 2025, officials stress the importance of equitable wealth distribution and continued economic resilience.

Simultaneously, the government is grappling with a global energy crisis. Finance Minister Makis Keravnos announced that the focus remains on containing fuel prices rather than pursuing major reductions, as geopolitical tensions continue to drive costs higher. Eurostat data released in October 2026 confirms that fuel and lubricant prices in Cyprus rose by 24.6% in September, up from 19.1% in August. While this remains below the EU average hike of 31.4%, authorities are monitoring the performance of support measures, including the recent zero-VAT application on essential goods. The Finance Minister intends to request greater fiscal flexibility from the EU to address these ongoing energy-related challenges.