Cyprus’s economic growth slowed to 2.9% in the fourth quarter of 2024, impacted by a month-long cement industry strike, yet remained significantly above the eurozone average, the Finance Ministry said.
The Mediterranean island’s economy grew 0.3% quarter-on-quarter, according to seasonally adjusted data from the Statistical Service, maintaining its position among the eurozone’s top performers despite the slowdown.
The cement workers’ strike, which lasted from November 7 to December 2, 2024, significantly disrupted the construction sector, one of the economy’s key growth drivers, the ministry said in a statement.
Despite the setback, Cyprus’s growth rate remained nearly two percentage points above the eurozone average of 0.9% and the EU’s 1.1%, according to Eurostat data.
The ministry revised its full-year 2024 growth forecast to 3.4% from 3.7%, citing the strike’s impact, but expressed confidence in a recovery through 2025 despite challenging external conditions.
“The Cypriot economy demonstrates strong resilience compared to other European economies,” the ministry said, crediting disciplined fiscal policy and the implementation of the National Recovery and Resilience Plan.
Hotels, restaurants, wholesale and retail trade, vehicle repair, and information and communications sectors drove fourth-quarter growth, while construction contracted.
Cyprus ranked among the eurozone’s top five growing economies in Q4 2024, behind Poland (3.7%), Spain (3.5%), and Lithuania (3.6%), and ahead of Portugal (2.7%).
In contrast, Germany’s economy contracted by 0.2%, while France and Italy recorded modest growth of 0.7% and 0.5% respectively.
The broader eurozone saw quarterly growth of 0.1% in Q4, with the EU posting 0.2% growth, according to preliminary Eurostat estimates.
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