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Cyprus saw a big jump in food, drink, and tobacco sales in September 2025, with people buying 10.4% more than the same month last year, Eurostat says. That’s the highest increase in the European Union, far above the EU average of just 0.5% and the eurozone’s 1% rise.
For consumers, it means Cypriots are spending more in shops, from groceries and snacks to drinks and cigarettes, pointing to stronger local demand compared with most of Europe. Spain and Malta also saw smaller sales boosts of 4.5% and 4.4%, while countries like Estonia, Romania, and Belgium actually sold less.
The figures suggest that, despite economic uncertainty in the EU, Cypriots are shopping more, which could be a sign of confidence or simply higher prices and rising living costs pushing up the total sales numbers.
Another report, however, states that Europe’s economy has so far weathered the storm of rising U.S. tariffs without sliding into recession, but any meaningful recovery will depend on households opening their wallets after years of economic shocks. While the eurozone grew slightly faster in the July-September quarter and shows early signs of growth at year-end, retail sales remain sluggish, with Europeans continuing to save heavily rather than spend.
High savings, 15.4% of household income in Q2 2025, reflect lingering effects of the pandemic, rising interest rates, and fears sparked by events like the Russian invasion of Ukraine and soaring prices. This caution is evident in behaviors like “cart abandonment” in online shopping, showing hesitation to spend.
Future growth may come from increased defense and infrastructure spending in Germany and a potential easing of Europe’s high savings rate, which ECB economists expect by 2027. But until households feel confident enough to spend more freely, economic recovery is likely to remain slow.
