Cyprus growth outpaces EU as energy costs and interest rates weigh on households

Nicosia, Cyprus. Cyprus is heading into autumn with one of the strongest growth rates in the EU, but rising energy costs, higher interest rates and weaker external demand could determine how much of that growth reaches households, CFA Society Cyprus board member Kyriacos Inios said.

Growth outlook and household pressures

Inios said Cyprus was growing faster than almost any other EU economy but faced the same imported pressures as other countries.

“The war in the Middle East has pushed up the price of oil, and with it the price of everything that moves by road or ship,” he said.

With the ECB raising rates again, he added, “the next few months will show how much of the growth reaches household budgets”.

Inios described the economy’s starting point as strong. Real GDP grew by 3.8 per cent in 2025, compared with 1.5 per cent across the EU. The European Commission’s May forecasts put Cyprus’ growth at 2.3 per cent in 2026, against 1.1 per cent for the EU.

Researchers’ Night marks 20 years in Cyprus

More than 5,000 people attended European Researchers’ Night 2026 in Nicosia as the annual science and innovation event marked 20 years in Cyprus, according to the Research and Innovation Foundation (RIF).

Held at the Cyprus State Fair last week, the event also drew more than 2,000 school pupils through organised visits and activities.

This year’s edition, themed “CELEBRATE 2.0 – Two Decades of STEAM-Powered Inspiration”, brought together researchers, academics, scientists, companies and organisations from across Cyprus’ research and innovation sector.

Visitors explored more than 75 exhibition stands and could participate in over 80 interactive activities, including experiments, workshops, simulations, games, quizzes and demonstrations.

Air connectivity central to tourism growth

Strong and expanding air connectivity remains crucial to the sustainable growth of Cyprus tourism and the wider economy, Hermes Airports said on the occasion of World Tourism Day.

The company said tourism remained one of the most important pillars of the Cypriot economy and had shown considerable resilience in recent years despite successive international challenges and uncertainty.