Cyprus records 3% GDP growth in first quarter of 2026

The Statistical Service of Cyprus reported a 3% GDP growth rate for the first quarter of 2026 compared to the same period in 2025. While this performance remains the highest in the European Union, it reflects an economic deceleration, as the growth rates were 4.3% in the fourth quarter of 2024 and 3.6% in the first quarter of 2025. On a quarterly basis, the growth rate reached 0.2%, lower than the 1.2% observed in the previous quarter. The primary drivers of this growth include wholesale and retail trade, repair of motor vehicles, information and communications, and financial and insurance activities. President Nikos Christodoulides and Finance Minister Makis Keravnos attributed the positive figures to the government's fiscal policy and the economy's resilience amid global geopolitical uncertainty. The government emphasized that this data aligns with 30 positive ratings from international agencies. Official sources noted that despite the slowdown, the Cypriot economy continues to outperform the European Union and Eurozone averages.