MINISTER OF FINANCE - THE CYPRIOT ECONOMY GREW AT A RATE MORE THAN 3 TIMES THAT OF THE EUROZONE - Filenews 14/8
The Cypriot economy maintained strong growth momentum in the second quarter of 2026, with real GDP growing by 3.3% year-on-year, compared to growth of 1% in the euro area, according to the preliminary estimate of the Statistical Service.
In a written statement, the Minister of Finance, Makis Keravnos, stated that the data confirm the resilience of the Cypriot economy in a particularly demanding European and international environment.
As he noted, Cyprus grew at a rate more than three times that of the eurozone, which, according to him, is not a random or circumstantial result.
The Minister attributed the positive course to prudent fiscal management, the stability of the financial system, the strengthening of investor confidence and the dynamics of businesses and employees.
Growth of 0.8% quarter-on-quarter
Compared to the first quarter of 2026, seasonally adjusted GDP increased by 0.8%. In the first quarter, quarterly growth of 0.5% and annual growth of 3% were recorded.
The positive growth rate in the second quarter is mainly attributed to the following areas:
- wholesale and retail trade and repair of motor vehicles,
- information and communications,
- financial and insurance activities;
- constructions.
"We do not treat the indicators with complacency"
Makis Keravnos pointed out that the Government does not ignore the international uncertainties nor the pressures that households and businesses continue to face.
"We do not approach positive indicators with complacency," he said, adding that the goal is for growth to be transformed into greater fiscal security, new investments, more and better-paid jobs and targeted social support.
According to the Minister of Finance, the careful and precautionary fiscal policy strengthens the credibility of the Cypriot economy and creates the conditions for a more productive, competitive and resilient economic model.
The course of GDP
| Period | Change from previous quarter | Annual change |
|---|---|---|
| Q2 2026 | 0,8% | 3,3% |
| Q1 2026 | 0,5% | 3,0% |
| Q4 2025 | 1,2% | 4,2% |
| Q3 2025 | 0,8% | 3,5% |
