Cyprus's economy faces 2025 with mixed signs. The economy is growing, but people feel a little less positive. The economy's growth index is up a little. However, a general feeling of confidence has slightly decreased. This happens while banks are doing well. Bank of Cyprus Holdings is a good example. People are also changing how they manage money. They are borrowing more but saving more too.
Data from November 2025 shows good economic growth. The economy grew by 1.8% this year. This is because Cyprus and the euro area have a strong economy. Tourism is helping a lot. So are shops and the housing market. Cheaper oil also helps prices stay low. This supports economic growth. However, less electricity was produced. This slightly slows down the expected growth.
On the other hand, people's confidence is lower. The confidence indicator dropped a little in November. It was 104.0, down from 104.1 in October. This is because businesses in services are less confident. They feel their recent sales were not as good. However, confidence is still better than before. Shops, building, and industry are more confident. People are also more confident.
The financial sector is strong. Bank of Cyprus Holdings is doing well. Its profits fell by 12% to €353 million. This was because they earned less from loans. However, the bank now expects higher profits for the year. It will also pay more dividends to shareholders. New loans increased by 31% to €2.24 billion. Loans are up by 6%. Deposits have grown by 7% to €21.5 billion.
Cypriot households are making interesting money choices. In November, people borrowed €50 million more. This means total loans are €26.8 billion. People are borrowing to pay for things. At the same time, people put €258.6 million into savings. Total savings are now €57.9 billion. This shows people are managing costs. They are also trying to feel more secure.
In conclusion, Cyprus's economy has cautious hope. Some feelings are down a bit. But the economy is still growing steadily. Banks and businesses are strong. People are managing their money well. They are borrowing and saving. This helps them deal with today's costs. They are also preparing for the future. We will see if growth continues.