Cyprus economy holds steady as GDP grows 3 per cent

Cyprus’ economy grew by 3 per cent year-on-year in the first quarter of 2026, supported by household spending, exports and activity across key services sectors, preliminary data from the Cyprus Statistical Service (Cystat) showed on Tuesday.

Gross domestic product (GDP), in real terms and adjusted for seasonal fluctuations and working days, also rose by 0.2 per cent compared with the fourth quarter of 2025.

Growth was mainly driven by wholesale and retail trade, transport, accommodation and food services, along with information and communication and financial and insurance activities.

According to the production approach, the strongest annual increase was recorded in information and communication, which grew by 5.4 per cent.

It was followed by construction, up 4.9 per cent, while the broader sector covering trade, transport, accommodation and food services rose by 4.4 per cent.

Financial and insurance activities increased by 2.4 per cent, while real estate activities grew by 2.1 per cent.

On the expenditure side, private consumption remained the main pillar of growth.

Spending by households and non-profit institutions serving households rose by 5.1 per cent compared with the first quarter of 2025, while government consumption increased by 4.6 per cent.

As a result, total final consumption expenditure was up 4.9 per cent year-on-year.

The external sector also remained strong, with exports of goods and services rising by 10.5 per cent to €8.68bn in real terms.

Imports increased at a similar pace, rising by 10.4 per cent to €8.18 billion, reflecting continued demand across the economy.

Investment, however, was weaker.

Gross fixed capital formation increased by 1.5 per cent year-on-year, but fell by 5.2 per cent compared with the previous quarter.

Excluding ships and aircraft, investment declined by 2.3 per cent on an annual basis, pointing to softer activity in parts of the economy less affected by large one-off transport equipment transactions.

المصدر: Cyprus Mail