Cyprus’s economy grew a seasonally adjusted 3.3 per cent year on year in the second quarter of 2026, more than double the eurozone’s 1.2 per cent and the EU’s 1.4 per cent, according to revised data from the Statistical Service (CYSTAT) published on Tuesday and the latest Eurostat figures.
On a quarterly basis, GDP rose 1.2 per cent on the first quarter, against 0.6 per cent in the eurozone and 0.7 per cent in the EU, putting Cyprus fourth in the EU. Ireland led with 10.2 per cent, followed by Slovenia with 1.9 per cent and Sweden with 1.6 per cent. Luxembourg recorded the biggest contraction, of 0.9 per cent, followed by Austria at 0.1 per cent.
Cyprus’s quarterly output reached 8,369.3 million euros. The figures follow growth of 4.8 per cent in real terms in 2025, when GDP reached a record 38,314.1 million euros in nominal terms.
Spending and investment
Total consumer spending rose 4.5 per cent year on year, with household consumption up 4.0 per cent at 4,880.5 million euros. General government spending increased 6.0 per cent.
Gross fixed capital formation, or investment, rose 7.9 per cent year on year and 17.4 per cent on the previous quarter, to 1,771.0 million euros. CYSTAT said the increase was significantly affected by activity involving ships and aircraft. Excluding these, other fixed investment fell slightly, by 1.3 per cent.
Incomes and sectors
In 2025, compensation of employees rose 6.9 per cent to 16,841.1 million euros, while net operating surplus, which reflects business profits, grew 4.9 per cent to 10,678.2 million euros.
Services accounted for 86.2 per cent of total economic activity, with trade and tourism remaining the biggest employers and major contributors to GDP.
In the second quarter of 2026, trade, transport, accommodation and food services contributed 1,718.3 million euros, up 5.2 per cent year on year. Information and communication grew 4.4 per cent to 1,099.2 million euros, after expanding 12.7 per cent in volume terms in 2025.
Construction rose 4.8 per cent year on year to 383.0 million euros, supported by an 18.7 per cent rebound in fixed investment in 2025.
