Cyprus economy grew 3.3% in first half of 2026, finance minister says

Nicosia, Cyprus. Cyprus’ economy grew by about 3.3 per cent in the first half of 2026, more than three times the average growth rate of other EU member states, Finance Minister Makis Keravnos said on Wednesday. He said the expansion continued despite difficulties in the international environment and eurozone growth of 1 per cent.

Growth across sectors

Speaking to the Cyprus News Agency, Keravnos said Cyprus was growing at more than three times the European average while most European economies were facing difficulties.

He said growth was distributed across several sectors, particularly wholesale and retail trade, communications, insurance and construction.

According to Keravnos, the broad-based nature of the expansion made it more durable and reduced dependence on a single sector.

Public finances and employment

Keravnos said public finances remained strong, with the government recording a surplus of €770.6 million, equivalent to 2 per cent of GDP.

Public debt fell to 55 per cent of GDP at the end of last year, below the EU’s 60 per cent threshold for the first time since 2009, while unemployment stood at around 4 per cent during the first half of the year.

Credit ratings

Keravnos said Cyprus’ economic performance was reflected in recent assessments by international rating agencies.

Standard & Poor’s and Fitch maintained Cyprus’ A- rating with a positive outlook in March and May respectively, while Moody’s retained its A3 rating in May.

Fitch and Moody’s are due to review Cyprus again in November.