Cyprus is set to remain among the European Union’s fastest-growing economies in 2026, with unemployment expected to fall to a historic low, President Nikos Christodoulides said.

Referring to the European Commission’s Spring Forecasts, Christodoulides said the first figures of the year were already supporting this outlook, with preliminary estimates showing 3 per cent growth in the first quarter of 2026, placing Cyprus among the EU’s top performers.

The president also pointed to the country’s fiscal position, saying Cyprus is projected to record the highest fiscal surplus among EU member states, estimated at 2.1 per cent of GDP this year. 

At the same time, public debt is expected to fall further to 50.4 per cent of GDP, while unemployment is forecast to drop to 4.2 per cent, which he described as a historic low. 

Christodoulides said the figures reflected the government’s “responsible and prudent fiscal policy”, adding that this was, “above all, Cyprus”, a reference to the government’s argument that fiscal discipline should translate into tangible benefits for the country. 

He said this approach had strengthened the state’s ability to provide targeted support to households and businesses, while also allowing further investment in education, health and the welfare state. 

The president added that the same policy direction was supporting Cyprus’ transition to a more modern, sustainable and growth-oriented economic model.