Cyprus private debt drops to a third of 2012 peak

The trajectory of Cyprus private debt stands as one of the most significant economic stories of the past three decades. Cyprus household debt has fallen to 54.2% of GDP in 2025, down from a peak of 167.5% in 2012, according to the latest Eurostat data, marking one of the largest deleveraging processes recorded in the European Union.

From the mid-1990s until the global financial crisis, bank lending in Cyprus grew rapidly, fuelling the housing market and private consumption. Eurostat’s recent...