**Cyprus Water Output Surges 14.2% as Electricity Production Falls 4% in June**
Cyprus experienced a notable shift in its industrial production landscape in June 2026, as the water supply sector saw a significant increase in output while electricity production declined, according to data released by the Cyprus Statistical Service (Cystat).
The overall industrial production in Cyprus rose by 0.3% year-on-year, reaching an index of 117.6 units based on a 2021 baseline of 100 units. For the first half of 2026, industrial output showed a more robust growth of 1.2% compared to the same period in the previous year.
In June, the manufacturing sector contributed to this growth with a modest increase of 0.6%. However, the mining and quarrying sector outperformed other sectors with an impressive annual rise of 11.4%. The water supply and materials recovery sector also recorded a positive trend, with an overall increase of 1.5% compared to June 2025.
A closer examination of the water supply and materials recovery sector revealed contrasting performances within its components. Water collection, treatment, and supply surged by 14.2%, highlighting a growing demand or improved efficiency in water management. In contrast, materials recovery faced a significant decline of 15.1%, indicating potential challenges in recycling or waste management processes.
Among various manufacturing activities, the production of other non-metallic mineral products led the sector with a notable increase of 7.5%. The manufacturing of rubber and plastic products also performed well, rising by 4.7%. Other sectors, including the production of wood and cork products (excluding furniture) and basic metals and fabricated metal products, both saw increases of 2.3%. However, textiles, wearing apparel, and leather products recorded a modest growth of just 0.4%.
On the downside, the manufacturing of machinery, equipment, motor vehicles, and other transport equipment experienced the most significant decline, plummeting by 8.5%. Additionally, the production of electronic and optical products, as well as electrical equipment, fell by 2.4%. The combined category of furniture, other manufacturing, and the repair and installation of machinery and equipment also saw a decrease of 2.3%. Smaller reductions were noted in the production of paper products and printing (down 0.7%) and food, beverages, and tobacco products (down 0.6%). The manufacturing of refined petroleum products, chemicals, and pharmaceutical products also saw a slight decrease of 0.5%.
Looking at cumulative data for January to June 2026, manufacturing output increased by 0.7% compared to the same timeframe in 2025. The mining and quarrying sector rose by 1.1%, while water supply and materials recovery grew by 2.5%. The standout performer in the first half of the year was water collection, treatment, and supply, which increased by 11.5%. The manufacturing of basic metals and fabricated metal products followed with a growth of 5.1%, while electricity supply saw a 4.3% increase.
Further growth was recorded in other non-metallic mineral products (up 3.4%) and wood and cork products (up 3.2%). Gains were also observed in refined petroleum products, chemicals, and pharmaceutical products (up 1.8%) and rubber and plastic products (up 1.4%). The production of paper products and printing increased by 0.7%, while the food, beverages, and tobacco sector remained stable with no change.
Conversely, the materials recovery sector faced the steepest decline in the first half of the year, dropping by 8.8% compared to January to June 2025. The manufacturing of machinery, equipment, motor vehicles, and other transport equipment decreased by 5.9%, while the furniture and other manufacturing sector, along with the repair and installation of machinery and equipment, fell by 4.2%. Textiles, wearing apparel, and leather products also saw a reduction of 3.9%, while electronic and optical products and electrical equipment experienced a slight decline of 0.4%.
Overall, the industrial production figures for June 2026 reflect a mixed performance across various sectors in Cyprus, with significant growth in water supply contrasting with declines in electricity production and certain manufacturing segments. These trends may indicate shifting economic dynamics and highlight areas for potential improvement and investment within the Cypriot industrial landscape.