Nicosia, Cyprus. President Nikos Christodoulides on Wednesday welcomed official estimates showing Cyprus’ GDP grew by 3 per cent year-on-year in the first quarter of 2026, calling it the highest growth rate in the European Union.
Cyprus outpaces euro area and EU averages
Christodoulides said the preliminary estimate confirms the resilience and dynamism of the Cypriot economy. Official figures showed Cyprus outperformed both the euro area and the EU average, where annual growth stood at 0.8 per cent and 1.0 per cent respectively.
Sectors driving growth
Seasonally adjusted GDP growth in Cyprus was driven primarily by wholesale and retail trade, information and communication, and financial and insurance activities.
Quarter-on-quarter performance
On a quarter-on-quarter basis, Cyprus recorded growth of 0.2 per cent, in line with the EU average, while the euro area posted a slower expansion of 0.1 per cent.
Growth moderates from late 2025
The data showed growth moderated compared with the 4.3 per cent year-on-year increase recorded in the fourth quarter of 2025.
Wider European slowdown
Across Europe, euro area GDP growth declined from 1.3 per cent to 0.8 per cent, and EU growth fell from 1.4 per cent to 1.0 per cent between the final quarter of 2025 and the first quarter of 2026.
Policy and ratings assessments
Christodoulides said Cyprus continues to grow at rates that exceed the European average amid geopolitical uncertainty, citing responsible economic policy, consistency and fiscal stability. He also linked the performance to what he described as 30 positive evaluations of the Cypriot economy by major international rating agencies.
What do you think the latest GDP figures suggest about Cyprus’ economic outlook?
