Cyprus construction growth and inflation data released as Alphabet reshuffles AI leadership

Nicosia, Cyprus. Cyprus’ construction sector maintained strong growth in the first half of 2026, while inflation eased to 2.9 per cent in July, according to Eurobank Research and the Statistical Service. Separately, Alphabet reshuffled its artificial intelligence leadership, appointing Demis Hassabis as group chief scientist.

Construction sector

Eurobank Research said first-quarter data showed continued resilience in Cyprus’ construction sector, with building permits, construction output, mortgage lending and business confidence indicating sustained expansion.

The sector was supported by a strong pipeline of new projects, rising property demand and continued investment activity.

However, the report noted that the latest building permit data covered January to March 2026, before the recent escalation of tensions in the Middle East. It said future data releases would provide a clearer indication of whether developers’ investment intentions remain strong following the regional conflict.

Alphabet AI changes

Google parent Alphabet announced changes to the leadership of its artificial intelligence operations, moving Nobel laureate Demis Hassabis from the day-to-day management of Google DeepMind to a newly created group-wide science role.

Hassabis, whose father has Greek Cypriot roots and family from Famagusta, will become Alphabet’s chief scientist and chair of Google DeepMind. He will step away from his main managerial duties at the AI laboratory but remain involved in its research and long-term strategy.

Four senior figures behind Gemini are leaving to establish their own company.

The changes come as the most powerful version of Alphabet’s latest Gemini model remains unreleased despite an initial June launch date. The delay has raised investor concerns that the company could lose ground to OpenAI and Anthropic, both of which recruited senior Google researchers during the summer.

Alphabet shares fell 4 per cent following Wednesday’s announcement.

July inflation

Cyprus’ inflation rate fell to 2.9 per cent in July 2026 from 3.1 per cent in June, as lower fuel prices and a sharp decline in clothing and footwear prices reduced the consumer price index on a monthly basis, figures released by Cystat showed.

The Consumer Price Index decreased by 0.68 points to 102.32 units in July, compared with 103.00 units in June.