Nicosia, Cyprus. Cyprus rose to 42nd place among 70 economies in the IMD World Competitiveness Yearbook 2026, up from 44th in 2025. The improvement was driven mainly by stronger economic performance, gains in the business environment and better infrastructure.
Overall ranking
The IMD World Competitiveness Yearbook 2026 evaluates 70 economies using 341 criteria. Its latest findings showed that Cyprus reversed part of the decline recorded in previous years by advancing two positions overall.
Performance by category
According to the report, Cyprus ranked 30th in economic performance, 30th in government efficiency, 46th in business efficiency and 42nd in infrastructure.
Compared with 2025, the largest improvement was recorded in economic performance, where Cyprus climbed six places. The country also gained six positions in the business environment.
Factors supporting the improvement
The report linked the stronger economic picture mainly to low unemployment, rising employment levels, slowing inflation and the maintenance of robust performances in services exports.
Cyprus also continued to demonstrate strengths in foreign direct investment and economic resilience.
Other developments noted in the report
Among the main positive developments highlighted were a reduction in long-term unemployment and improved assessments of the country’s image abroad.
The report also pointed to improvements in business flexibility and efforts aimed at reducing tax evasion.