Cyprus posted the third-highest annual GDP growth in the EU for the second quarter of 2025, with a notable increase of 3.3%, according to data from Eurostat published on Friday. The country was outpaced only by Ireland, which saw a remarkable 18% growth, and Bulgaria, which recorded 3.4%.
When compared to the previous quarter, Cyprus' GDP rose by 0.5%.
Across the EU, seasonally adjusted GDP growth stood at 1.6% year-on-year for Q2 2025, with the euro area growing by 1.5%. Quarter-on-quarter, the euro area posted a modest increase of 0.1%, while the EU saw a 0.2% rise. In the first quarter of 2025, the euro area’s GDP grew by 0.6%, and the EU by 0.5%.
Among EU countries, Luxembourg was the only one to experience a GDP decline year-on-year (-0.2%). Finland (-0.4%), Germany (-0.3%), and Italy (-0.1%) also saw GDP contraction compared to Q1 2025.
Cyprus Ranks Fifth in EU Employment Growth
Meanwhile, Cyprus also achieved one of the highest employment growth rates in the EU, with an increase of 1.8% in the second quarter of 2025, compared to the same quarter in 2024. The country ranked fifth in employment growth in the bloc. Compared with Q1 2025, employment increased by 0.5%, placing Cyprus fourth in the EU for quarterly employment gains.
Seasonally adjusted data from Eurostat shows that in Q2 2025, the EU’s workforce grew to 219.9 million people, with 171.6 million employed in the euro area.
Eurostat also highlighted that the combination of GDP and employment data allows for an estimation of labour productivity. In Q2 2025, productivity per person increased by 0.8% in the euro area and by 1.2% in the EU year-on-year. When measured by hours worked, productivity rose by 1.1% in the euro area and 1.5% across the EU.
In terms of GDP growth based on hours worked, Cyprus recorded an impressive 2.2% increase compared to the same period in 2024, placing it third in the EU behind Malta and Luxembourg. However, when compared to the first quarter of 2025, GDP per hour worked decreased by 0.2%.
