Nicosia, Cyprus. Cyprus is expected to remain among the European Union’s fastest-growing economies in 2026, with unemployment forecast to fall to a historic low, President Nikos Christodoulides said.
Growth outlook and early 2026 figures
Referring to the European Commission’s Spring Forecasts, Christodoulides said preliminary estimates showed 3 per cent growth in the first quarter of 2026, placing Cyprus among the EU’s top performers.
Fiscal surplus and public debt projections
The president said Cyprus is projected to record the highest fiscal surplus among EU member states, estimated at 2.1 per cent of GDP this year. He added that public debt is expected to fall further to 50.4 per cent of GDP.
Unemployment forecast and policy stance
Unemployment is forecast to drop to 4.2 per cent, which Christodoulides described as a historic low. He said the figures reflected the government’s “responsible and prudent fiscal policy,” adding that this was, “above all, Cyprus.”
Support measures and longer-term economic transition
Christodoulides said the approach had strengthened the state’s ability to provide targeted support to households and businesses, while allowing further investment in education, health and the welfare state. He added that the same policy direction was supporting Cyprus’ transition to a more modern, sustainable and growth-oriented economic model.
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