Cyprus GDP rises to €34.77 billion in 2024, boosted by ICT and tourism sectors
The Cyprus economy grew by 3.9 per cent in real terms in 2024, according to revised national accounts data released on Monday by the state statistical service (Cystat).
At current prices, Gross Domestic Product (GDP) increased by 7.2 per cent, reaching €34.77 billion.
The positive growth rate, Cystat said, was mainly attributed to strong performances in information and communication, hotels and restaurants, construction, and wholesale and retail trade including motor vehicle repairs.
In real terms, GDP totalled €29.42 bn, compared with the previous year’s figure.
The information and communication sector recorded the highest growth, with GDP at current prices rising by 17.50 per cent and in real terms by 11.30 per cent, reaching €3.59 bn and €3.32 bn respectively.
The accommodation and food service activities sector grew by 11.30 per cent at current prices and 6.20 per cent in real terms, with output of €2.03 bn and €1.80 bn.
Construction expanded by 8.50 per cent at current prices and 5.30 per cent in real terms, generating €1.73 bn and €1.42 bn respectively.
The wholesale and retail trade sector, including the repair of motor vehicles and motorcycles, rose by 6.60 per cent in current prices and 4.20 per cent in real terms, with GDP contributions of €3.58 bn and €2.70 bn.
Meanwhile, public administration and defence increased by 10.00 per cent at current prices and 4.40 per cent in real terms, reaching €2.64 bn and €2.04 bn respectively.
The financial and insurance activities sector expanded by 4.90 per cent at current prices but showed modest real growth of 1.10 per cent, generating €3.08 bn and €2.38 bn respectively.
Real estate activities rose by 7.70 per cent in current prices and 2.10 per cent in real terms, totalling €3.12 bn and €2.61 bn.
The arts, entertainment, and recreation sector grew by 8.00 per cent at current prices and 6.00 per cent in real terms, with output of €416.60 million and €369.50 million respectively.
In terms of expenditure, private final consumption rose by 5.80 per cent at current prices and 4.00 per cent in real terms, reaching €19.92 bn and €17.80 bn.
Government final consumption increased by 7.00 per cent in current prices and 1.60 per cent in real terms, totalling €6.40 bn and €5.00 bn respectively.
Gross capital formation reached €7.19 bn at current prices, an increase of 3.20 per cent, while in real terms it rose by 0.60 per cent to €6.01 bn.
Exports of goods and services rose by 7.90 per cent in current prices and 6.10 per cent in real terms, amounting to €33.73 bn and €30.48 bn respectively.
Imports of goods and services grew by 6.10 per cent in current prices and 5.00 per cent in real terms, with values of €32.47 bn and €29.80 bn.
According to Cystat, the GDP estimate is based on both production and expenditure approaches, while the income approach serves as a residual method for determining the operating surplus.
Meanwhile, the International Monetary Fund (IMF) recently revised upwards its forecasts for Cyprus, expecting GDP growth of 2.90 per cent in 2025 and 2.80 per cent in 2026, compared with April estimates of 2.50 per cent and 2.70 per cent.
The IMF said Cyprus is performing more strongly than expected despite weaker global demand, while inflation is projected to ease sharply to 0.70 per cent in 2025 and 1.30 per cent in 2026, the lowest in the euro area.
The current account deficit is forecast to widen to 8.50 per cent of GDP in 2025 and 9.10 per cent in 2026, reflecting stronger imports linked to domestic demand.
Unemployment is set to remain low at 4.50 per cent in 2025 and 4.70 per cent in 2026.
Globally, the IMF expects world growth of 3.20 per cent in 2025 and 3.10 per cent in 2026, with advanced economies expanding by 1.60 per cent.
It warned, however, that trade tensions and uncertainty continue to weigh on global prospects.