Nicosia, Cyprus. Cyprus’ economy expanded by 3 per cent year-on-year in the first quarter of 2026, supported by household spending, exports and activity in key services sectors, preliminary data from the Cyprus Statistical Service (Cystat) showed on Tuesday. Gross domestic product (GDP), in real terms and adjusted for seasonal fluctuations and working days, also increased by 0.2 per cent compared with the fourth quarter of 2025.
Services and construction lead annual growth
Growth was mainly driven by wholesale and retail trade, transport, accommodation and food services, as well as information and communication and financial and insurance activities. On the production side, information and communication recorded the strongest annual increase, rising by 5.4 per cent.
Construction followed, up 4.9 per cent, while the broader sector covering trade, transport, accommodation and food services rose by 4.4 per cent. Financial and insurance activities increased by 2.4 per cent, and real estate activities grew by 2.1 per cent.
Household spending and exports support demand
On the expenditure side, private consumption remained the main driver of growth. Spending by households and non-profit institutions serving households rose by 5.1 per cent compared with the first quarter of 2025, while government consumption increased by 4.6 per cent.
Total final consumption expenditure was up 4.9 per cent year-on-year. The external sector also remained strong, with exports of goods and services rising by 10.5 per cent to €8.68 billion in real terms.