Economic Development of Cyprus in Numbers: 2024 Results and Future Prospects

The Cyprus Statistical Service published the “Monthly Economic Trends” report on February 12, 2025, covering data for 2024 and providing a comparative analysis. Based on the presented data, several key economic trends can be highlighted.

The Cypriot economy demonstrated stable growth in several key sectors, including:

1. Industrial Growth

In 2024, industrial production increased by 1.8% compared to 2023. While the growth rate is not exceptionally high, it indicates stability in the manufacturing sector, which plays a crucial role in the Cypriot economy. This growth may be linked to higher domestic demand for Cypriot products and industry adaptations to new economic realities.

2. Construction Boom

A particularly significant increase was recorded in the construction sector. The total area of building permits issued reached 1,722.0 thousand square meters between January and August 2024, marking an 18.0% increase compared to the same period in 2023.

The 18% growth reflects strong demand for real estate, driven by:

• Increased investment in construction projects
• Growing domestic demand and heightened interest from foreign investors
• Infrastructure expansion, including new residential complexes, commercial properties, and tourism developments

This trend further confirms that Cyprus remains an attractive destination for real estate investments.

3. Inflation Slowdown

The Consumer Price Index (CPI) rose by 1.8% from January to December 2024, indicating moderate inflation, which is a positive economic signal. This suggests that:

• Prices are rising at a controlled pace, ensuring economic stability.
• Consumer purchasing power remains strong, fostering active spending.
• The government and the Central Bank effectively manage monetary policy.

A moderate inflation level is also essential for attracting investments, as it reduces risks and enhances economic predictability.

4. Record-Breaking Tourism

The number of tourist arrivals from January to December 2024 reached 4,040,200, compared to 3,845,652 in the same period of 2023, reflecting a +5.1% increase.
The growth in tourist numbers confirms that Cyprus remains one of Europe’s top travel destinations. Its popularity is driven by well-developed tourism infrastructure, high service standards, a favorable climate, and rich cultural heritage.
Additionally, the strategic geographic location and well-connected transportation network make Cyprus easily accessible to travelers from around the world. Combined with government initiatives promoting Cyprus as a leading tourist hub, this contributes to sustained industry growth, increased foreign investment, and job creation.

5. Growth in the Automotive Sector

The total number of registered motor vehicles increased by 9.1%, reaching 49,616 between January and December 2024.

• The number of private sedans rose to 34,254, marking a +11.2% increase.
• The number of light commercial vehicles increased to 4,638, reflecting a +36.1% rise compared to the same period in 2023.

A 9.1% rise in vehicle registrations indicates growing consumer and business purchasing power. The notable 36.1% growth in light commercial vehicles suggests increased small and medium business activity, rising e-commerce demand, and expansion in logistics and delivery services.

Conclusion

Given current trends, 2025 is expected to be a strong year for Cyprus, provided the country continues to develop its key industries and adapt to global economic shifts.

Cyprus remains one of the most attractive jurisdictions for investments in real estate, business, and finance. Its transparent tax system, business-friendly environment, and strategic location make it an ideal hub for international projects.

If you are interested in investment opportunities in Cyprus, company registration, tax benefits, or real estate acquisition, reach out to Feod Group experts, who can guide you through all the details and help you find the best solution for your business and capital.

Our office in Larnaca is always open for you!