Nicosia, Cyprus. Cyprus recorded stronger economic growth than both the euro area and the European Union in the first quarter of 2026, according to Eurostat estimates, despite a slowdown from the previous quarter. The figures showed that Cyprus’ gross domestic product expanded by 0.2 per cent quarter-on-quarter and by 3 per cent year-on-year in the January to March period.
Cyprus growth slows from previous quarter
The European Union’s statistical office said Cyprus’ GDP increased by 0.2 per cent in the first quarter of 2026 compared with the previous quarter. This was lower than the 1.2 per cent increase recorded in the fourth quarter of 2025.
Compared with the same period a year earlier, the Cypriot economy grew by 3 per cent in the first quarter of 2026. This was down from annual growth of 4.3 per cent in the fourth quarter of 2025.
Annual growth in Cyprus had stood at 3.6 per cent in the third quarter of 2025 and 3.7 per cent in the second quarter of 2025.
Euro area and EU contract in first quarter
Despite the moderation in growth, Cyprus outperformed both the euro area and the EU.
According to Eurostat, seasonally adjusted GDP in the euro area declined by 0.2 per cent in the first quarter of 2026 compared with the previous three months. GDP across the EU fell by 0.1 per cent over the same period.
In the final quarter of 2025, both the euro area and the EU had recorded quarterly growth of 0.2 per cent.
On an annual basis, euro area GDP increased by 0.3 per cent in the first quarter of 2026, following growth of 1.2 per cent in the previous quarter.