The private sector is once again leading the way in shaping the economic growth rate based on GDP, as according to the Statistical Service, Cyprus recorded a rate of 3% during the first quarter of 2026.

This growth rate may prove to be the highest among all EU member states, a fact that will be confirmed by data to be released shortly by Eurostat.

The Statistical Service specifically states in its announcement that the seasonally adjusted GDP growth rate for the first quarter of 2026 is positive and is estimated at 3.0% compared to the corresponding quarter of 2025.

The positive GDP growth rate is mainly attributed to the sectors: "Wholesale and Retail Trade, Repair of Motor Vehicles," "Information and Communication," and "Financial and Insurance Activities."

It is noted that compared to the same quarter of 2025, a slight deceleration is observed; however, it is considered painless, as a 3% growth rate remains an exceptionally significant figure.

Under the current conditions facing the Cypriot economy—due to the prolonged war in Iran and the resulting energy, tourism, and livestock crises—it is essential for the government to remain frugal regarding its expenditures and subsidies.

It is further noted that the purpose of this preliminary GDP estimate is to provide an initial snapshot of the Cypriot economy's growth based on preliminary data.

Quarterly National Accounts are produced using an indirect approach based on short-term indicators that provide information on the evolution of the phenomena under study. Additionally, the "Chow-Lin" benchmarking technique is used for the temporal disaggregation of data.

The level of GDP in Cyprus is determined by the production and expenditure approaches, while an indirect calculation is performed for the income approach. Quarterly National Accounts are produced at current prices, in real terms, and at previous year prices; they are published and transmitted to Eurostat two months after the end of the reference quarter (t+2).

Source: Brief