Cyprus’ Tertiary Sector Sees Broad-Based Expansion in 2023, Driven by Gains Across Services

Cyprus’ tertiary sector delivered a strong performance throughout 2023, with every branch of economic activity registering increases in production value, value added, and employment, according to the latest report issued by the Statistical Service of Cyprus (Cystat). The newly published Services and Transport Survey confirms widespread growth across the board, pointing to a resilient and expanding services economy.

Production value rose significantly in several key segments compared to 2022. According to the survey data, “transportation and storage activities saw an increase of 6.7 per cent,” while the “accommodation and food service activities rose by 20.5 per cent.” A similar upward trajectory was recorded in the information and communication services sector, which achieved a 17.4 per cent rise. Real estate activities followed closely with a 16.3 per cent increase.

Further gains were registered across the professional and technical services space. “Professional, scientific and technical activities went up by 10.0 per cent,” while administrative and support service activities experienced a notable surge of 16.9 per cent. Education services expanded as well, with a growth rate of 10.9 per cent, and human health and social work activities rose by 8.7 per cent. “Arts, entertainment and recreation grew by 13.3 per cent,” while “other service activities expanded by 9.3 per cent,” according to the Cystat findings.

Value added at current prices followed a similarly robust pattern, increasing across all service sectors. Accommodation and food service activities posted the highest jump, “up by 24.3 per cent, reaching €1.74 billion.” Administrative and support service activities also made a significant leap, with a 16.5 per cent rise to €719.40 million. Meanwhile, transportation and storage activities recorded a 15.8 per cent increase, reaching €1.10 billion. Real estate activities, which also saw healthy growth, “climbed by 15.6 per cent, reaching €213.00 million.”

The information and communication sector once again stood out, with the value added in this domain increasing sharply by 18.6 per cent to reach €3.28 billion, marking one of the most substantial contributions to the tertiary sector in terms of monetary value.

Employment trends across the sector closely mirrored the positive production and value-added data. Every economic activity within the tertiary sector experienced growth in the number of people employed. Accommodation and food service activities led in terms of employment volume, with “56,483 people working in the sector in 2023.” Professional, scientific and technical activities followed with a workforce of 41,667 persons. In addition, information and communication services employed 26,258 individuals.

Transportation and storage activities accounted for 22,482 jobs, while administrative and support service activities provided employment for 19,939 persons in 2023.

Cystat confirmed that “all data reflect economic performance in 2023 relative to 2022,” presenting a comprehensive and sustained upward trend throughout the tertiary sector. The broad-based nature of the growth underscores the resilience and dynamism of Cyprus’ service-driven economy, which appears to have gained momentum across nearly all sub-sectors.

By fLEXI tEAM