Cyprus economy grows by 3.1 percent in the third quarter of 2026

The Cypriot economy continued to expand in the third quarter of 2026, recording an annual growth rate of 3.1 percent, according to preliminary data released by the Statistical Service (Cystat) and Eurostat on November 13, 2026. While this growth remains positive, it represents a slight deceleration compared to the 3.4 percent annual growth reported in the second quarter of 2026 and 4.2 percent in the same period of 2025. On a quarterly basis, GDP increased by 0.5 percent between July and September, slowing down from the 1.2 percent growth observed in the previous quarter.

The expansion was primarily driven by several key sectors, including wholesale and retail trade, vehicle repairs, financial and insurance services, construction, and information and communication. Despite the moderation in pace, the 3.1 percent annual figure surpassed the 2.9 percent projection previously issued by the Ministry of Finance, as well as forecasts from international bodies such as the IMF.

Cyprus' performance in the third quarter remains significantly stronger than the European Union and euro area averages, which recorded 1.5 percent and 1.3 percent annual growth respectively. Although the quarterly growth rate of 0.5 percent aligns with the EU average, the data indicates that Cyprus continues to hold a position among the stronger-performing economies within the bloc.