Cyprus’s economy grew by 3.3% in the second quarter of 2026, compared with 1% in the eurozone, according to the preliminary estimate released by the Statistical Service – a figure that, according to Finance Minister Makis Keravnos, confirms the resilience and dynamism of the Cypriot economy.
In a written statement issued following the publication of the data by the Statistical Service, Keravnos noted that the Cypriot economy continues to expand at a robust pace, despite a particularly challenging European and international environment.
He said the 3.3% increase in real GDP in the second quarter takes on even greater significance when compared with the corresponding growth rate in the eurozone, which stands at just 1%. “Cyprus is therefore growing at more than three times the rate of the eurozone,” he said.
The Finance Minister described the result as neither accidental nor cyclical, but rather the outcome, as he put it, of prudent fiscal management, stability in the financial system and strengthened investment confidence, as well as the dynamism of Cypriot businesses and workers.
At the same time, Keravnos stressed that the Government does not overlook international uncertainties and the pressures still facing households and businesses. For this reason, he added, the positive indicators are not being met with complacency.
On the contrary, according to the Minister, the aim is to turn strong performance into greater fiscal security, new investment, more and better-paid jobs, and targeted support for society.
Keravnos underlined, finally, that the careful and pre-emptive fiscal policy pursued by the Government is enhancing the credibility of the Cypriot economy and creating the conditions for a more productive, more competitive and more resilient economy, to the benefit of the public.
Statistical Service announcement
The Cypriot economy recorded a growth rate of 3.3% in the second quarter of 2026 compared with the same quarter of 2025, according to a preliminary estimate by the Statistical Service, while on a quarterly basis Gross Domestic Product (GDP) increased by 0.8%.
In a statement on Friday, the Statistical Service said the seasonally adjusted GDP growth rate reached 3.3% in the second quarter of 2026, compared with the corresponding quarter of the previous year.
The positive growth rate was mainly due to developments in the wholesale and retail trade and repair of motor vehicles sector, information and communication, financial and insurance activities, and construction.
Compared with the previous quarter, GDP rose by 0.8%, against a 0.5% increase in the first quarter of 2026.
On an annual basis, the growth rate stood at 3.0% in the first quarter of 2026, compared with 4.2% in the fourth quarter of 2025, 3.5% in the third quarter and 3.7% in the second quarter of 2025.
The Statistical Service clarified that the preliminary GDP estimate provides an initial picture of the Cypriot economy’s performance 45 days after the end of the quarter and is based on fewer available sources of information than the Quarterly National Accounts estimates, which are published two months after the end of the reference quarter.
