Philenews

Lending in Cyprus Exceeds GDP Growth

Published January 27, 2026, 07:15
Lending in Cyprus Exceeds GDP Growth

Lending in Cyprus has increased significantly, exceeding GDP growth. According to an ECB report, credit expansion showed momentum in 2025, following the easing of the ECB's monetary policy in June 2024. The increase in lending was more gradual compared to previous recovery periods. Data shows that in November, credit expansion was 10.5% year-on-year, compared to 1.9% in November 2024 and -0.2% in November 2023. Credit expansion has been above the economic growth rate for the last two quarters. The ECB report states that overall credit expansion in the Eurozone is weak compared to previous recoveries, and that all sources of external financing for businesses remain subdued. The analysis highlights that the gap between credit and GDP is a useful indicator for assessing whether credit growth is sufficient to sustain economic recovery.