Cyprus economy grows 3.3% annually in second quarter of 2026

Nicosia, Cyprus. Cyprus recorded annual economic growth of 3.3 per cent in the second quarter of 2026, more than three times the eurozone rate, according to preliminary data released by the statistical service Cystat on Friday.

Seasonally adjusted gross domestic product increased by 0.8 per cent from the previous quarter, up from 0.5 per cent growth in the first quarter.

Growth drivers

The expansion was driven mainly by wholesale and retail trade, vehicle repairs, information and communication, financial and insurance activities, and construction, Cystat said.

The latest result marked a slight acceleration from annual growth of 3.0 per cent in the first quarter of 2026.

The economy had expanded by 4.2 per cent annually in the fourth quarter of 2025, 3.5 per cent in the third quarter and 3.7 per cent in the second quarter of 2025.

Minister’s response

Finance Minister Makis Keravnos said the figures showed that the economy continued to expand at a strong pace despite a challenging international and European environment.

He noted that Cyprus grew at more than three times the eurozone’s annual rate of 1 per cent during the same period.

Keravnos said the performance was neither accidental nor temporary, attributing it to prudent fiscal management, financial system stability, stronger investor confidence and the dynamism of Cypriot businesses and workers.

He added that the government remained aware of international uncertainties and pressures on households and businesses, and would not approach the positive indicators with complacency.