Cyprus reports 3 percent GDP growth in first quarter of 2026

In the first quarter of 2026, the Cyprus Statistical Service reported a 3 per cent year-on-year GDP growth, which stands as the highest rate within the European Union. This performance exceeds the Euro area average of 0.8 per cent and the EU average of 1.0 per cent. On a quarter-on-quarter basis, Cyprus recorded a growth of 0.2 per cent, matching the EU average while slightly outperforming the Euro area's 0.1 per cent. This growth was primarily driven by the wholesale and retail trade, information and communication, and financial and insurance sectors. While the annual growth rate remains strong, it reflects a moderation compared to the 4.3 per cent growth recorded in the fourth quarter of 2025. President Nikos Christodoulides and Finance Minister Makis Keravnos attributed these results to the government's fiscal policies and economic resilience amidst geopolitical uncertainty. The data highlights a broader cooling trend across the European economy, with growth slowing in both the Eurozone and the EU since late 2025.