Cyprus Q1 GDP Growth Slows to 5-Year Low

The economy of Cyprus grew by 3.0% year-on-year in the first quarter of 2026, down from 4.5% in the previous period and confirming preliminary estimates. This marked the weakest expansion since Q1 2021, as growth slowed across several sectors, including agriculture, forestry, and fishing (0.1% vs 1.1% in Q4), mining and quarrying (2.0% vs 4.3%), manufacturing (1.9% vs 4.7%), and construction (4.9% vs 9.2%). On the expenditure side, final consumption expenditure growth accelerated (4.9% vs 4.0%), supported by household spending (5.1% vs 3.3%), while gross fixed capital formation returned to growth (1.5% vs -15.2%). Net trade also contributed positively, with exports rising 10.5% and imports increasing 10.4%. On a quarterly basis, GDP grew by 0.2%, slowing sharply from 1.4% in the previous quarter and marking the weakest pace since Q4 2022.

The economy of Cyprus grew by 3% year-on-year in the first quarter of 2026, marking the slowest expansion since the first quarter of 2021 and easing from a revised 4.3% growth in the previous quarter, according to flash estimates. Economic activity continued to be supported by strong performances in the wholesale and retail trade, repair of motor vehicles, information and communication, and financial and insurance sectors. On a quarterly basis, GDP increased by 0.2% in the first quarter, marking the weakest pace of expansion since the fourth quarter of 2022, following a revised 1.2% rise in the prior period.

The economy of Cyprus expanded 4.5% year-on-year in the fourth quarter of 2025, up from 3.6% in the previous period, confirming preliminary estimates. This marks the strongest economic expansion since Q4 2022, mainly driven by wholesale and retail trade, repair of motor vehicles, information and communication, and hotels and restaurants (+7.2%). Construction also recorded strong growth, rising 9.2%, while manufacturing increased by 4.7%. On the expenditure side, final consumption expenditure rose by 4.0%, supported by a 6.4% increase in government spending, while household consumption grew by 3.3%. Net trade also contributed positively, as exports of goods and services increased by 4.4%, while imports rose by 2.7%. Meanwhile, fixed investments declined by 15.2%. On a quarterly basis, GDP grew by 1.4%, the fastest pace since Q1 2024, accelerating from 0.9% in Q3. For the whole year, GDP expanded by 3.8%.