Cyprus household debt has declined to 54.2% of GDP in 2025, according to new data from Eurostat.
The figure represents a dramatic reduction from the 167.5% peak recorded in 2012, underscoring one of the most significant economic transformations in the island nation over the past three decades.
The sharp de-leveraging reflects years of post-crisis adjustment and structural reforms aimed at stabilizing the domestic financial sector.
While the headline ratio suggests a healthier balance sheet for Cypriot households, the broader economic picture remains complex.
The debt reduction comes against a backdrop of ongoing macroeconomic headwinds that continue to weigh on growth prospects.
Recent indicators highlight persistent vulnerabilities in the economy.