Cyprus economic performance trends for first half of 2026

Cyprus experienced a slowdown in economic growth during the first quarter of 2026, with GDP expanding by 3.0 percent year-on-year, compared to 4.3 percent in the final quarter of 2025. Eurobank Research attributed this decline primarily to a surge in imports, which rose by 10.4 percent, partly due to base effects from previous investments in transport equipment. Despite this, private consumption showed resilience, growing by 4.9 percent, bolstered by a record low unemployment rate of 4.0 percent. However, the University of Cyprus Economics Research Centre reported that the Composite Leading Economic Index (CCLEI) remained in negative territory in June 2026 with a 0.65 percent year-on-year decline. This negative trend was driven by heightened geopolitical uncertainty, lower business and consumer confidence, and declines in electricity production and tourism. Higher Brent crude oil prices also exerted downward pressure on the index. The research noted that, despite these external stressors, certain sectors demonstrated resilience in the current economic climate.