**Keravnos: Cyprus Economy Grows Three Times Faster Than EU Average**
Cyprus is experiencing significant economic growth, with an increase of approximately 3.3 percent in the first half of 2026, according to Finance Minister Makis Keravnos. This growth rate is more than three times the average of other European Union member states, which have been facing challenges in their economic performance.
In a statement to the Cyprus News Agency, Keravnos highlighted that despite the difficulties present in the international economic environment, Cyprus has managed to maintain a robust growth trajectory. He noted that while the eurozone's growth is limited to around 1 percent, Cyprus's economy is thriving, showcasing resilience and adaptability.
Keravnos attributed the economic expansion to a diverse range of sectors, including wholesale and retail trade, communications, insurance, and construction. This broad-based growth is seen as a positive indicator, as it reduces reliance on any single sector, thereby enhancing the overall durability of the economy.
In addition to the impressive growth figures, Cyprus's public finances have remained strong. The government recorded a surplus of €770.6 million, which is equivalent to 2 percent of the country's Gross Domestic Product (GDP). Furthermore, public debt has decreased to 55 percent of GDP by the end of the previous year, falling below the EU's 60 percent threshold for the first time since 2009. Unemployment rates have also remained stable at around 4 percent during the first half of 2026.
The positive economic performance has not gone unnoticed by international rating agencies. Standard & Poor’s and Fitch have both maintained Cyprus's rating at A- with a positive outlook earlier in the year, while Moody’s retained its A3 rating in May. These assessments are crucial as they reflect international confidence in Cyprus's economic stability and growth potential. Fitch and Moody’s are scheduled to review Cyprus's ratings again in November.
Despite these encouraging developments, Keravnos cautioned against complacency. He pointed out that ongoing regional conflicts and rising energy prices pose risks to the economy, contributing to inflationary pressures. Inflation has risen from 0.5 percent in January to 3.1 percent by June, with projections suggesting it could reach around 4 percent by the end of 2026.
In response to these challenges, the government is committed to implementing measures aimed at alleviating the impact of rising costs on households and businesses while maintaining fiscal discipline. Keravnos emphasized the importance of balancing economic growth with responsible financial management to ensure sustainable development in the future.
As Cyprus continues to navigate a complex economic landscape, the government's proactive approach and the diverse nature of its economic growth may serve as key factors in sustaining its positive trajectory in the coming years.