Christodoulides says Cyprus growth sends clear message to international markets

President Nikos Christodoulides on Wednesday welcomed official estimates showing Cyprus’ GDP grew by 3 per cent year-on-year in the first quarter of 2026, describing it as the highest growth rate in the European Union and evidence of the country’s economic resilience and momentum.

“The preliminary estimate of a 3 per cent growth rate in the first quarter of 2026, the highest in the European Union, confirms the resilience and dynamism of the Cypriot economy,” Christodoulides said.

The president’s remarks come as official figures confirm that Cyprus significantly outperformed both the euro area and the EU average, where growth stood at 0.8 per cent and 1.0 per cent respectively on an annual basis.

The seasonally adjusted GDP growth rate in Cyprus was driven primarily by wholesale and retail trade, information and communication, and financial and insurance activities, highlighting the strength of the country’s services-led economy.

On a quarter-on-quarter basis, Cyprus recorded growth of 0.2 per cent, in line with the EU average, while the euro area posted a slower expansion of 0.1 per cent.

Despite the strong annual performance, the data also showed that growth moderated compared with the 4.3 per cent year-on-year increase recorded in the fourth quarter of 2025, indicating some easing in economic momentum.

Across Europe, the broader trend pointed to a slowdown, with euro area GDP growth declining from 1.3 per cent to 0.8 per cent, and EU growth falling from 1.4 per cent to 1.0 per cent between the final quarter of 2025 and the first quarter of 2026.

“In a period of geopolitical uncertainty, during which the European average growth is at significantly lower levels, Cyprus continues to grow at rates that significantly exceed the European average, demonstrating its resilience and positive prospects as a result of our responsible economic policy, consistency and fiscal stability,” the president stated.

The president stressed that the latest data should not be viewed in isolation, linking the performance to a broader pattern of positive international assessments.

“This announcement is not an isolated statistical figure, it adds to the 30 positive evaluations of the Cypriot economy by all major international rating agencies, which constitute a strong vote of confidence in our country’s economic course,” Christodoulides said.

He also mentioned that the figures deliver a strong signal about Cyprus’ position within Europe’s economic landscape.

“This announcement also sends a clear message that Cyprus is at the forefront of European growth, with an economy that is stable, reliable and capable of creating prospects for businesses, employees and society,” the president stated.

“A prospect that allows us to invest substantially in health, education, housing and the welfare state,” he added.

“With a specific plan and based on social liberalism, we continue to transform economic stability into social security, growth into new opportunities and our country’s international credibility into greater resilience and prospects,” the president concluded.