Filenews 15 November 2025 - by Angelos Angelodimou
On Friday, the data in relation to the growth of the Cypriot economy for the third quarter of 2025 were announced. The numbers show that the Cypriot economy is on the right track and has left behind the stone years that led to the 2013 crisis, but also followed it. After all, no matter how much we want to judge and criticize this course of development, it is a given that in this economic system in which we are integrated, the numbers are the ones that will be judged by international organizations, will be evaluated and will enable the government of the day to go to the markets, to borrow at a low interest rate, attract investment and grow.
Without going into a deep economic analysis, let's look at some data that concern not only the Cypriot economy, but also the key sectors that contribute to growth, as well as the wage situation of workers.
Course of the economy – labour
Succinctly. Growth Rate: (1) The seasonally adjusted GDP growth rate in the third quarter of 2025 is positive and is estimated at 3.6% compared to the corresponding quarter of 2024, according to a preliminary estimate published on Friday by the Statistical Service. Compared to the previous quarter, the growth rate recorded an increase of 0.9%.
Average salary: (2) According to the Minister of Labour Yiannis Panagiotou, the average salary has increased in the last two years by 13% approaching €2,500, while the intermediate salary has increased by almost 11.5% approaching €1,900.
Minimum Wage: (3) The introduction of the Minimum Wage was made by the revised Decree of the Council of Ministers on 1.1.2024. The Minimum Monthly Wage is paid to any employee in the Republic and is set at €1,000 for full-time employment. For those who have not completed six months of continuous employment with the same employer, the Minimum is set at €900 for full-time employment. The Minister of Labour, Yiannis Panagiotou, had stated that "the Minimum Wage has had a positive effect, so that in the last two years the number of low-paid workers, who have earnings below €1,000, has been reduced by 30%".
Unemployment: (4) Based on seasonally adjusted data, which reflect the trend of unemployment, the number of registered unemployed in October 2025 decreased to 9,476 persons, compared to 9,671 in the previous month. Compared to October 2024, a decrease of 682 people or 8,8% was recorded. This decrease is mainly attributable to the sectors of trade, construction, manufacturing, financial and insurance activities, as well as to the decline in new entrants to the labour market.
Key Industries
The main sectors of the Cypriot economy are on the same wavelength. That is, tourism, land development, retail trade.
Retail trade: (5) The Retail Trade Turnover Value Index increased in September 2025 by 6,3% compared to the corresponding month of the previous year. During the same month, the Retail Trade Turnover Volume Index increased by 9,0% compared to the corresponding month of the previous year.
Real estate: (6) Almost €3.5 billion is the value of transfers in the first nine months of the year, reports the Real Estate Agent Registration Council. On an annual basis, he says, there was an increase of 13% in the number of sales documents filed nationwide in the period January – September. The President of the Real Estate Agents Registration Council, Marinos Kineyirou, stated that the data of the nine months of 2025 confirm "unequivocally that the real estate market is going through a period of strong and qualitative growth, acting as a key pillar of resilience for the economy".
Tourism: (7) Tourism revenues in August 2025 amounted to €581.8 million, showing an increase of 13.8% compared to the corresponding month of the previous year (€511.4 million). For the period January – August 2025, tourism revenues are estimated at €2,472.9 million compared to €2,121.8m. in the corresponding period of 2024, recording an increase of 16.5%. Tourist arrivals in September 2025 amounted to 570,635 compared to 509,463 in September 2024, marking an increase of 12.0%. For the period January – September 2025, tourist arrivals amounted to 3.604.790 compared to 3.268.090 in the corresponding period of 2024, recording an increase of 10,3%.
The other side
However, as is always the case, every coin has two sides. The numbers show a particularly good picture for the Cypriot economy and we must credit this to the Government. But here some questions arise.
Do the numbers really tell the truth? Are the citizens of this country as prosperous as the numbers? What is really the reason for the growth of the main market sectors, which contribute to the wider development of the economy? And most importantly. Why do such a large number of our fellow citizens complain about the high prices and the fact that they cannot make ends meet with their salary?
Let's examine the points we touched on above
Average salary. Is the average salary in Cyprus really €2500? For the numbers to say it means that it is, on the basis of the formula with which it is exported. But is it representative of the salary that Cypriot workers receive? Of course and clearly not. After all, according to the data of the Statistical Service, the highest percentage of employees (14.2%) corresponds to the group of employees who receive between €1,000 and €1,249, followed by the group of employees who receive between €1,250 and €1,499 (11.6%).
Therefore, most employees move in a salary range that starts from €1000 and reaches €1500. Gross of course. So how did the average salary skyrocket to €2500? In recent years, a large number of technology companies and related industries have settled in Cyprus, contributing on the one hand to the development of the economy, but at the same time increasing the average salary on the island.
Retail. Both the volume and value of turnover in retail has increased. But how can this be explained since a large number of consumers complain about the high prices and that they cannot make it through the month? By the admission of industry professionals, the fact that the volume is increasing shows that the market pie has increased. And this, mainly due to the descent of a large number of foreigners to Cyprus, specifically Israelis and Lebanese. Therefore, supermarkets and retail stores continue to increase their turnover, but not necessarily with Cypriot consumers.
Property. The market is growing, sales documents are increasing, prices are rising. So the market is moving positively. But Cypriot interested buyers and especially young couples have been almost excluded from the market as with prices at these heights, they are not able to buy a property. As in order to get a loan from the bank, they need to pay 20% upfront. But who has such an amount when an average apartment reaches 250-300 thousand? As for rents? The situation is even worse, with the result that the government and the church have mobilized to increase the housing stock in the market and offer consumers houses and apartments at lower prices. And here it is admitted that the large turnout of foreign buyers and investors, combined with the withdrawal from the market of a number of properties that are granted through the short-term rental method (Airbnb) have skyrocketed prices.
Tourism. No special explanations are needed here. The strengthening of arrivals and revenues with consecutive records year after year contribute decisively to the wider development of the economy, given that this sector is a key pillar of it. The impressive increase in the descent of tourists from Israel in the last two years, who in fact ensure the first place in the part of the money they spend during their stay on our island, is a key component in the development of the industry and by extension in the course of the economy.
Foreigners, the side effects and the role of the Government
In conclusion. The descent of foreign companies, investors, tourists and citizens in general, contributes to and strengthens the development of the Cypriot economy. At the same time, however, it creates side effects that are mainly borne by domestic residents. So, should we demonize foreign investment?
Of course not. That would be a big mistake. After all, similar situations are faced by other countries beyond Cyprus. But this is where the role of the state and the Government comes in. To ensure that everyone benefits from the growth of the economy. Businesses and consumers. Cypriots and foreigners. As well as the cost to be equal and not to bring only a portion of the population to its knees. This means that the numbers and the citizens prosper.
