Cyprus’ economy grew by 3.0% year on year in the first quarter of 2026, preliminary data from the Statistical Service of Cyprus showed on Tuesday.
On a quarter‑on‑quarter basis, gross domestic product (GDP), measured in real terms and adjusted for seasonal variations and working days, rose by 0.2% compared with the final quarter of 2025.
Growth was driven mainly by wholesale and retail trade, transport, tourism and hospitality, information and communication activities, as well as financial and insurance services.
Using the production approach, the information and communication sector recorded the strongest annual expansion at 5.4%, followed by construction at 4.9% and the trade, transport, accommodation and food services sector at 4.4%. Financial and insurance activities grew by 2.4%, while real estate activities increased by 2.1%.
On the expenditure side, private consumption remained the main contributor to growth. Spending by households and non‑profit institutions rose by 5.1% compared with the first quarter of 2025, while general government consumption increased by 4.6%. Overall final consumption expenditure expanded by 4.9%.
Exports of goods and services rose by 10.5% in real terms to €8.68 billion, while imports increased by 10.4% to €8.18 billion, reflecting continued strength in external trade.
Investment activity was more subdued. Gross fixed capital formation increased by 1.5% year on year but fell by 5.2% compared with the previous quarter. Excluding ships and aircraft, investment declined by 2.3% annually, pointing to a slowdown across key sectors.
Source: Statistical Service of Cyprus, CNA
