Cyprus’ economy grew by some 3.3 per cent in the first half of 2026, more than three times the average of other member states, Finance Minister Makis Keravnos said on Wednesday.

Speaking with the Cyprus News Agency, Keravnos said the economy had maintained a strong growth rate despite present difficulties in the international environment, with eurozone growth limited to 1 per cent.

“We are growing at a rate more than three times the European average, at a time when most European economies are struggling,” he said.

Keravnos said growth was spread across several areas of the economy, particularly wholesale and retail trade, communications, insurance as well as construction.

He said this broad base gave the expansion greater durability rather than leaving the economy dependent upon just one single sector.

Public finances have also remained strong, for the government recorded a surplus of €770.6 million, equivalent to 2 per cent of GDP.

Public debt fell to 55 per cent of GDP at the end of last year, below the EU’s 60 per cent threshold for the first time since 2009, whilst unemployment remained at around 4 per cent during the first half of the year.

Keravnos said Cyprus’ economic performance had also been reflected in recent assessments by international rating agencies.

Standard & Poor’s and Fitch maintained Cyprus at A- with a positive outlook in March and May respectively, while Moody’s retained its A3 rating in May.

Both Fitch and Moody’s are due to review Cyprus again in November.

Keravnos nevertheless warned against complacency, pointing to ongoing conflicts in the region and higher energy prices, which have contributed to rising inflation and increased costs for households and businesses.

Inflation rose from 0.5 per cent in January to 3.1 per cent in June, with the government expecting it to reach around 4 per cent by the end of the year.

Keravnos said the government would continue implementing measures to ease the impact on households and businesses whilst maintaining fiscal discipline.