Cyprus economy grows faster than EU despite slowdown

Cyprus's economy continued its steady growth in the first quarter of 2026, although expansion rates have decreased slightly compared to previous periods. This is according to data from the Statistical Service of Cyprus and Eurostat.

Seasonally adjusted GDP growth was 3.0% year-on-year compared to the first quarter of 2025. For comparison, in the fourth quarter of 2024, the figure reached 4.3%, and in the first quarter of 2025, it was 3.6%, indicating a gradual slowdown in momentum.

The main drivers of growth were wholesale and retail trade, motor vehicle repair, the information and communications sector, and financial and insurance activities.

In quarterly terms, the economy grew by 0.2% compared to the fourth quarter of 2025, which is also lower than previous values (1.2% and 1.5% respectively in past periods).

Despite the slowdown, Cyprus maintains a leading position in the EU in terms of economic growth rates. In the eurozone, the figure fell to 0.8% from 1.3%, and in the EU as a whole, to 1% from 1.4%. For comparison, growth among other countries in the region was: Bulgaria — 2.9%, Spain — 2.7%, Lithuania — 2.5%, Portugal — 2.3%.

Minister of Finance Makis Keravnos stated that the published data confirm the resilience of the Cypriot economy even in conditions of increased international uncertainty. According to him, the current indicators reflect the correctness of the government's economic policy and create a basis for further strengthening the investment environment.

The government, in turn, declares its intention to continue a "consistent and disciplined" economic policy aimed at attracting investment, supporting entrepreneurship, and improving the welfare of citizens.