The economy of Cyprus expanded 4.5% year-on-year in the fourth quarter of 2025, up from 3.6% in the previous period, confirming preliminary estimates. This marks the strongest economic expansion since Q4 2022, mainly driven by wholesale and retail trade, repair of motor vehicles, information and communication, and hotels and restaurants (+7.2%). Construction also recorded strong growth, rising 9.2%, while manufacturing increased by 4.7%. On the expenditure side, final consumption expenditure rose by 4.0%, supported by a 6.4% increase in government spending, while household consumption grew by 3.3%. Net trade also contributed positively, as exports of goods and services increased by 4.4%, while imports rose by 2.7%. Meanwhile, fixed investments declined by 15.2%. On a quarterly basis, GDP grew by 1.4%, the fastest pace since Q1 2024, accelerating from 0.9% in Q3. For the whole year, GDP expanded by 3.8%.