Cyprus GDP grows 3.3 per cent in second quarter, outpacing eurozone average

President and Finance Minister welcome the latest figures, highlighting prudent government policy Cyprus recorded 3.3 per cent annual economic growth in the second quarter of 2026, more than three times the eurozone rate, according to preliminary data released by the state statistical service (Cystat) on Friday. Specifically, the Cypriot economy’s seasonally adjusted gross domestic product (GDP) increased by 3.3 per cent compared with the second quarter of 2025, while growth accelerated on a quarterly basis to 0.8 per cent, up from 0.5 per cent in the first quarter. The expansion was driven mainly by wholesale and retail trade and vehicle repairs, information and communication, financial and insurance activities, and construction, the statistical service said. The latest figure represents a slight acceleration from the 3.0 per cent annual growth recorded in the first quarter of 2026. The economy had expanded by 4.2 per cent 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. Finance Minister Makis Keravnos said the latest figures showed that the economy continued to expand at a strong pace, demonstrating its resilience and momentum despite a challenging international and European environment. “The Cyprus economy is therefore growing at a rate more than three times that of the eurozone,” Keravnos said, pointing to the eurozone’s 1 per cent growth rate over the same period. He explained that the performance was “neither accidental nor temporary”, attributing it to prudent fiscal management, financial system stability and stronger investor confidence, as well as the dynamism of Cypriot businesses and workers. At the same time, Keravnos said the government remained conscious of international uncertainties and the pressures facing households and businesses. “That is why we do not approach the positive indicators with complacency,” he said. The government, he added, aimed to “turn the favourable economic performance into greater fiscal security, new investment, more and better-paid jobs“, as well as “targeted support for society“. President Nikos Christodoulides also welcomed the figures, saying they demonstrated the economy’s strong growth potential and resilience. “With a growth rate of 3.3 per cent in the second quarter of 2026, Cyprus has once again recorded a performance more than three times the European average,” Christodoulides said. “The new strong performance of the Cyprus economy confirms that our country continues to follow a stable growth path, despite the challenges and uncertainties of the international environment,” he added. The president said the figures also reflected what he described as responsible, methodical and prudent economic policy, including continued reforms, efforts to attract investment, improved competitiveness and the use of Cyprus’ comparative advantages. “This is a policy that has also strengthened the credibility of the Republic of Cyprus and creates greater scope for targeted policies for the benefit of society,” Christodoulides said. He added that this approach was being pursued “far from populism and cost-free declarations that have cost our country and the Cypriot people”. Christodoulides also linked the economic performance to what he described as continued positive assessments from international rating agencies and increased confidence in Cyprus among investors and businesses. “The strong growth path is also reflected in the labour market, with our country maintaining one of the lowest unemployment rates in the European Union,” he said. The president credited businesses and workers with playing a decisive role in sustaining the economy’s performance. “Behind this course are the workers and businesses of our country, whose contribution is decisive,” he said. He added that the government would continue pursuing a stronger, more competitive and resilient economy, with the ultimate aim of improving citizens’ daily lives and creating greater security. The statistical service cautioned that the latest figure is a preliminary estimate, designed to provide an early indication of economic growth 45 days after the end of the quarter. It is based on fewer sources of information than the quarterly national accounts estimates, which are published two months after the end of the reference quarter.