Cyprus is currently one of the strongest retail markets in Europe, with an increase of +2.0% in July '26 in the volume of retail trade on a monthly basis and +8.6% on an annual basis and is moving on a completely different trajectory from the EU and Eurozone average.
The most important of the data announced by Eurostat https://ec.europa.eu/eurostat/en/web/products-euro-indicators/w/4-04092026-ap is that this performance does not appear isolated. It comes after a significant increase in May and is part of an overall strong retail course in 2026.
The data of the previous months show that the strong performance of July is not an isolated phenomenon. In Cyprus, the monthly changes in the volume of retail trade were: February: +0.8%, March: +0.6%, April: -0.9%, May: +3.7%, June: -0.9%, July: +2.0%.
May stands out in particular, when an increase of 3.7% was recorded, while after the temporary decline in June, the market returned dynamically in July. The overall picture of the seven-month period therefore points to a market with significant resilience, despite monthly fluctuations.
Even more impressive is the comparison with July 2025. The volume of retail trade in Cyprus increased by 8.6% year-on-year, a performance that was the highest among EU member states. In second place was Latvia with 7.1% and in third place was Sweden with 6.4%. At the same time, the increase in the EU was only 1.0% and in the eurozone 0.6%.
The Cypriot performance is therefore about 8.6 times higher than the EU average growth rate and more than 14 times higher than the corresponding rate of the euro area. The picture is completely reversed in several major economies. Germany recorded an annual decline of 2.5%, Italy 1.0% and Spain 0.7%. The decline was even greater in Romania, with 5.7%.
Eurostat data are an important indication that private consumption in Cyprus continues to support economic activity at a time when several of Europe's largest economies are facing significantly weaker demand. The increase in the volume of retail trade is of particular importance, as it is not just about increasing prices. The index measures the change in actual quantity/activity in retail trade, after adjusting for prices. The 8.6% year-on-year increase is therefore an indication of a significant increase in real retail activity.
It does not mean, however, that household disposable income has increased by 8.6% or that the consumption of all Cypriots has increased at this rate. The index refers to retail trade activity as a whole and can be influenced by tourism, visitor markets, the composition of sales, consumption habits and other factors.
