Nicosia, Cyprus. Cyprus’ GDP grew 3% year-on-year in the first quarter of 2026, outperforming both the euro area and the European Union, according to Cystat and Eurostat.
Cyprus growth and key sectors
Figures from the Cyprus Statistical Service (Cystat) and Eurostat showed the seasonally adjusted GDP growth rate was driven primarily by wholesale and retail trade, information and communication, and financial and insurance activities. The data highlighted the continued importance of technology and services to the country’s economic performance.
Quarterly and annual comparisons with Europe
On a quarter-on-quarter basis, Cyprus’ GDP expanded by 0.2%, matching the EU average growth rate, while the euro area recorded an increase of 0.1%. Annually, Cyprus’ 3.0% growth rate was above the EU’s 1.0% and the euro area’s 0.8%.
Moderation from the previous quarter
Cyprus’ growth moderated compared with the fourth quarter of 2025, when the economy expanded by 4.3% year-on-year.
European growth trends
Across Europe, annual GDP growth slowed, with the euro area declining from 1.3% in the fourth quarter of 2025 to 0.8% in the first quarter of 2026, while the EU fell from 1.4% to 1.0%. Quarterly growth in the EU remained stable at 0.2%, while the euro area eased from 0.2% to 0.1%.
United States comparison
Beyond Europe, the United States economy recorded GDP growth of 0.5% quarter-on-quarter, compared with 0.1% in the previous quarter. On an annual basis, the US economy expanded by 2.7%, up from 2.0% in the previous quarter, Eurostat reported.
How do you think Cyprus’ technology and services sectors will affect its growth in the coming quarters?