Cyprus recorded the fourth highest growth rate in the EU in the second quarter, more than triple that of the eurozone, according to statistics published on Friday. The growth path remains steady, despite the challenges and uncertainties of the international environment, Nikos Christodoulides said in a written statement. We are not being complacent, stresses Makis Keravnos.
The Cypriot economy recorded an acceleration in its growth rate in the second quarter of 2026, despite the uncertaintycreated by developments in the Middle East.
According to preliminary data published on Friday by the Statistical Service and Eurostat, the seasonally adjusted GDP growth rate for the second quarter of 2026 is positive, standing at 3.3% compared with the corresponding quarter of 2025, up from 3% growth in the first quarter of 2026. This is the fourth highest growth rate in the EU.
The positive GDP growth rate, the Service noted, is mainly attributable to the sectors of "Wholesale and Retail Trade, Repair of Motor Vehicles," "Information and Communication," "Financial and Insurance Activities" and "Construction."
Compared with the previous quarter, the growth rate stands at 0.8%, up from 0.5% in the first quarter of 2026.
A steady growth path
"The new strong performance of the Cypriot economy confirms that our country continues to follow a steady growth path, despite the challenges and uncertainties of the international environment," President of the Republic Nikos Christodoulides said in a written statement.
At the same time, he added, it confirms that the Cypriot economy has strong growth momentum and resilience.
"These results reflect, at the same time, our responsible, methodical and prudent economic policy, with continuous reforms, attraction of investment, strengthening of competitiveness and the exploitation of our country's comparative advantages. A policy that has also strengthened the credibility of the Republic of Cyprus and creates greater room for targeted policies for the benefit of society. Always, far removed from populism and costless declarations that have cost our country and the Cypriot people dearly," he stressed.
Strong rates
"The Cypriot economy continues to grow at strong rates, confirming its resilience and momentum within a particularly demanding European and international environment," Finance Minister Makis Keravnos said in a written statement.
The Statistical Service's preliminary estimate of a 3.3% increase in real GDP in the second quarter of 2026, he stressed, takes on even greater significance given that corresponding growth in the eurozone is limited to 1%. Cyprus is therefore growing at a rate more than triple that of the eurozone.
This result, he pointed out, is neither accidental nor circumstantial. It reflects prudent fiscal management, the stability of the financial system, strengthened investor confidence and, above all, the dynamism of Cypriot businesses and workers.
As he noted, "we do not disregard international uncertainties, nor the pressures still facing households and businesses. That is why we do not treat positive indicators with complacency. We convert them into greater fiscal security, new investments, more and better paid jobs, and targeted support for society."
"The careful and preventive fiscal policy pursued by the government strengthens the credibility of our economy and creates the conditions for a more productive, more competitive and more resilient economy for the benefit of citizens," he pointed out.
Slowdown in 2026
Despite the acceleration in the growth rate in the second quarter, according to forecasts, for the whole of 2026 the Cypriot economy will grow at a more moderate pace.
In its June 2026 economic bulletin, the Central Bank noted that the GDP growth rate for 2026 is projected to slow to 2.5%, compared with 3.8% for 2025.
According to the European Commission's Spring Forecasts, growth will slow to 2.3% in 2026, from 3.8% in 2025. A slowdown in the growth rate to 2.7% is also expected by the Economics Research Centre of the University of Cyprus.
EU
As for the EU, the growth rate rose to 1.2% in the second quarter, up from 0.8% in the first quarter, while in the eurozone it rose to 1% from 0.5%.
The highest growth rate was recorded by Slovenia, reaching 4.8%, followed by Lithuania with 3.8% and Poland with 3.7%.
