Nicosia, Cyprus. Cyprus’ economy showed a mixed but generally resilient performance in the opening months of 2026, with gains in construction activity, manufacturing production and vehicle registrations offset by weaker exports and a sharp decline in tourist arrivals, according to the Cyprus Statistical Service.
Inflation also remained relatively subdued during the first four months of the year.
Manufacturing and construction
Manufacturing production increased by 0.5 per cent in the January to March 2026 period compared with the corresponding period of 2025, Cystat said.
The construction sector recorded a substantial rise in activity. The total area covered by authorised building permits reached 661,400 square metres in January and February 2026, marking a year-on-year increase of 54.9 per cent compared with the first two months of 2025.
Vehicle registrations
The automotive market also showed strong growth in the first part of the year.
Total motor vehicle registrations rose by 15.1 per cent in the January to April period, reaching 18,570 vehicles.
Within that total, private saloon car registrations increased by 18.2 per cent to 12,866 vehicles, while registrations of light goods vehicles rose by 13.4 per cent to 1,781 units over the same period.
Broader economic picture
According to Cystat, the positive momentum in manufacturing, construction and vehicle registrations came alongside weaker exports and a sharp decline in tourist arrivals.
Inflation remained relatively subdued during the first four months of 2026.
