Cyprus economy shows growth and employment gains in second quarter of 2026

During the second quarter of 2026, the Cypriot economy experienced steady growth, with seasonally adjusted GDP increasing by 0.8% compared to the previous quarter and 3.3% on an annual basis. These figures outpaced the EU and Eurozone averages, which grew by 1.4% and 1.2% annually, respectively. According to the Fiscal Council, this growth was primarily driven by a 5.2% increase in consumption, with significant contributions from trade, tourism, transport, and hospitality.

Employment figures also showed positive trends, with a 1.7% increase compared to the same period in 2025, reaching a total of 525,167 individuals. This workforce comprised 472,254 employees and 52,913 self-employed persons. Furthermore, actual hours worked rose by 2.2% to 246.57 million hours. The most notable expansion in both headcount and hours worked was observed in sectors such as wholesale and retail trade, motor vehicle repair, construction, and arts, entertainment, and recreation.

While the economy is proving resilient despite geopolitical tensions in the Middle East, the Fiscal Council noted that current growth is heavily consumption-based rather than supported by a broader productive base. There are no ongoing court proceedings, as these figures represent quarterly macroeconomic reporting by the national statistical service and Eurostat.