Cypriot economy records 3.3% growth in the second quarter of 2026

The Cypriot economy showed strong performance in the second quarter of 2026, recording a growth rate of 3.3% according to preliminary estimates from the Statistical Service released on August 14. This result represents an acceleration from the 3% annual growth rate observed in the first quarter, with the quarterly growth reaching 0.8% compared to 0.5% in the previous period. Growth was primarily driven by sectors including wholesale and retail trade, communications, financial activities, and construction.

Finance Minister Makis Keravnos and President Nikos Christodoulides hailed the results, noting that the country's growth rate is more than triple that of the eurozone, which remains at 1%. The government attributed this resilience to prudent fiscal management, financial system stability, and increased investor confidence. Despite the positive outlook, officials acknowledged that international uncertainties and economic pressures on households and businesses remain, necessitating continued careful economic planning and targeted social support.

The government intends to utilize these positive results to enhance fiscal security, attract further investments, and create more high-quality jobs. Authorities emphasized that these outcomes reflect a consistent policy of reform and competitiveness, marking a departure from past populist measures.