According to official data published by Eurostat on Thursday, April 30, in 2024 the Corporate Investment Rate in Cyprus stood at 16.01%. This represents a noticeable decline compared to 2023, when the figure was 18.26%. However, looking at the broader timeline, progress is evident: back in 2015, the investment level was lower at 14.88%. Thus, despite the year-on-year drop, Cypriot businesses have become more active in investing over the past decade.
Cyprus among European Union countries
According to 2024 data, Cyprus is among the EU countries with the lowest levels of corporate investment. A similar level is recorded in Ireland at 16%. The rate is even lower only in Luxembourg at 15.9%. Slightly ahead of Cyprus are the Netherlands with 16.7% and Malta with 16.8%. This means that Cypriot companies invest in fixed capital significantly less than businesses in the EU’s leading economies.
Who invests the most in the European Union
The highest corporate investment rates in 2024 were recorded in Hungary (28.4%), Croatia (28.3%), the Czech Republic (27.6%), Belgium (27.0%), and Sweden (26.9%). The gap between these countries and Cyprus exceeds 10 percentage points, highlighting significant structural differences in economic policy and business environments.
Across the European Union as a whole, the corporate investment rate in the fourth quarter of 2025 stood at 21.8%, the lowest level since the third quarter of 2015. Cyprus is therefore following a broader trend: since 2021, there has been an almost continuous decline in investment activity among non-financial corporations. At the same time, between 2014 and 2018 the indicator showed steady growth — from about 22% to nearly 24%.
Why fluctuations occur
Temporary spikes in the index in certain quarters — for example, in the second quarter of 2015, 2017, and 2019, as well as at the end of 2019 and the beginning of 2020 — are mainly linked by Eurostat to increased imports of intellectual property assets in some EU member states. It is important to note that the corporate investment rate refers exclusively to the non-financial corporate sector. It is calculated as the ratio of gross fixed capital formation to gross value added within the system of national accounts. This indicator helps assess the relationship between investment activity and production levels in the economy and allows for comparisons across countries and time periods.
The decline of the corporate investment rate to 16.01% signals caution among Cypriot businesses regarding long-term investments. However, a positive aspect is the improvement compared to the middle of the previous decade. Experts link the current trend to global uncertainty, changes in interest rates, and shifting corporate priorities. To improve the situation, Cyprus may require additional support for investment activity, particularly in innovation and digital transformation.