The Cypriot economy posted further growth during the first quarter of 2026, with seasonally adjusted Gross Domestic Product (GDP) expanding by 3.0% compared with the corresponding quarter of 2025, while the Ministry of Finance of Cyprus said the figures confirm “the dynamism of the Cypriot economy.”
According to data released on Wednesday by the Statistical Service of Cyprus, economic activity also increased by 0.2% compared with the fourth quarter of 2025, confirming the continuation of the country’s growth trajectory, albeit at a more moderate quarterly pace.
Growth was driven primarily by the sectors of wholesale and retail trade and the repair of motor vehicles, information and communication technologies (ICT), as well as financial and insurance activities, which continued to serve as key pillars of economic expansion.
In its statement, the Finance Ministry noted that Cyprus’ growth rate remains significantly above the European average. According to figures from Eurostat, Cyprus’ 3.0% growth in the first quarter of 2026 compares with growth rates of 0.8% in the Eurozone and 1.0% across the European Union.
The Ministry also estimated that the economy will grow by 2.7% for the whole of 2026, a forecast it said is consistent with the economy’s performance so far this year.
As stated in the announcement, the latest figures confirm “the momentum of the Cypriot economy” despite heightened international uncertainty and ongoing external challenges. The ministry also stressed that Cyprus continues to record relatively strong growth rates alongside conditions of full employment.
Emphasis was placed on the importance of prudent and disciplined fiscal policy, with the Finance Ministry expressing the view that maintaining responsible economic management will further strengthen the resilience of the Cypriot economy, allowing the country to sustain medium-term growth rates above 3%.
Regarding GDP trends over recent quarters, the statement noted that in the first quarter of 2026 the economy expanded by 0.2% compared with the previous quarter and by 3.0% year-on-year.
In the fourth quarter of 2025, the economy grew by 1.2% quarter-on-quarter and by 4.3% compared with the corresponding quarter of 2024. In the third quarter of 2025, growth stood at 0.8% compared with the previous quarter and 3.6% on an annual basis, while the second quarter of 2025 recorded increases of 0.7% and 3.7% respectively.
During the first quarter of 2025, GDP rose by 1.5% compared with the previous quarter and by 3.6% compared with the corresponding quarter of 2024.
CNA/TNE/EPH/2026
ENDS, CYPRUS NEWS AGENCY
