Cyprus GDP Growth Slows to 3.1% in Q3

The economy of Cyprus expanded by 3.1% year-on-year in the third quarter of 2026, moderating from an upwardly revised 3.4% growth in the previous three-month period, according to flash estimates. Economic activity was supported by positive contributions from several key sectors, including wholesale and retail trade, repair of motor vehicles, financial and insurance activities, construction, and information and communication. On a quarterly basis, the country’s GDP increased by 0.5% in the third quarter of 2026, slowing from an upwardly revised 1.2% expansion recorded in the preceding three-month period.

Cyprus’ economy grew 3.3% year-on-year in the second quarter of 2026, matching preliminary estimates and picking up from a five-year low and an upwardly revised 3.1% in the previous three-month period. Domestic consumption growth edged up to 5.2% from 5% in Q1, as stronger household consumption (5.4% vs 5%) more than offset slower government spending (4.5% vs 5.2%). In addition, gross fixed capital formation surged to 9.5% from 1.2%, providing a further boost to expansion. On the external front, imports of goods and services accelerated to 12.9% in Q2 from 11%, while export growth eased to 9.6% from 13.4%. On a quarterly basis, GDP expanded 0.8%, up from a 0.2% gain in the previous period.

Economic growth in Cyprus rose to 3.3% year-on-year in the second quarter of 2026, up from 3% in the prior period, according to preliminary estimates. Economic activity continued to be supported by strong performances in the wholesale and retail trade, repair of motor vehicles, information and communication, financial and insurance and contruction sectors. On a quarterly basis, economic activity increased by 0.8% in the second quarter, following a upwardly revised 0.5% rise in the prior period.