Business & economy wrap-up from the day before

Cyprus’ economy recorded robust growth in the third quarter of 2025, with new national and European data confirming that the country continues to outperform the wider region.

According to a flash estimate by the Cyprus Statistical Service (Cystat), Cyprus’ seasonally adjusted gross domestic product increased by 3.6 per cent year-on-year in the third quarter of 2025.

Cystat said that the positive GDP growth rate is mainly attributed to the sectors wholesale and retail trade and repair of motor vehicles, information and communication, and hotels and restaurants.

The Research and Innovation Foundation (RIF) is leading a national delegation of 13 startups to Slush 2025 in Helsinki, one of the world’s most influential gatherings for founders and investors.

This marks the fourth consecutive year Cyprus participates with an official mission, underscoring the country’s growing role in Europe’s innovation scene.

“Cyprus is now home to a new generation of visionary founders who are proving that innovation knows no borders,” said Theodoros Loukaidis, Director General of RIF.

“Through the Research and Innovation Foundation’s flagship programmes, we enable Cypriot startups to grow stronger, attract private investment, and scale their ideas globally,” he added.

Cyprus is uniquely positioned to develop a strong and competitive capital market, provided that the country approaches the privatisation of the Cyprus Stock Exchange (CSE) in a strategic and inclusive way, according to Roman Lokhov, chairman of Roemer Capital.

“Theoretically, Cyprus could be in a position to establish a really strong capital market,” Lokhov said. “It could serve as a bridge between Europe, the Middle East and emerging economies, acting as a door into the European capital market.”

He believes that Cyprus has the potential to compete with countries such as Luxembourg and Ireland, particularly if the country focuses on developing its capital markets through modernisation and better regulatory alignment.

“Cyprus could really compete with financial hubs like Luxembourg or Ireland,” he added.