Cyprus GDP growth remains ahead of European average

Cyprus’ economy expanded by 3.1 per cent year-on-year in the third quarter of 2026, more than twice the growth recorded by the European Union and euro area, according to preliminary figures published by Eurostat on Friday.

The 3.1 per cent increase placed Cyprus among the stronger-performing EU economies, although growth moderated slightly from 3.4 per cent in the second quarter and 4.5 per cent in the final quarter of 2025.

On a quarterly basis, Cyprus’ gross domestic product (GDP) increased by 0.5 per cent between July and September, compared with 1.2 per cent in the previous quarter.

This was in line with the EU average, which also recorded quarterly growth of 0.5 per cent, while the euro area expanded by 0.4 per cent.

Across the EU, annual GDP growth reached 1.5 per cent, compared with 1.3 per cent in the euro area, marking slight improvements on the respective second-quarter rates of 1.4 per cent and 1.2 per cent.

Among member states with available third-quarter figures, Cyprus’ annual growth was exceeded by Ireland, where GDP increased by 3.6 per cent, while Spain recorded 2.7 per cent and Bulgaria 2.5 per cent.

Poland and Romania also recorded quarterly growth above Cyprus, at 0.8 per cent and 2.1 per cent respectively. However, Romania’s annual growth was just 0.3 per cent, reflecting its recent economic weakness.

Other countries recording stronger annual growth than Cyprus included Sweden at 2.8 per cent, Estonia at 2.2 per cent and the Netherlands at 2.1 per cent.

Germany’s economy grew by 1.2 per cent year-on-year, while Italy recorded 0.8 per cent. France was the only EU member state with available third-quarter figures to report an annual contraction, with GDP declining by 0.1 per cent.

Ireland recorded the strongest quarterly expansion, at 5.5 per cent, following growth of 10.2 per cent in the second quarter. Its figures, however, were particularly volatile, having contracted by 7.8 per cent in the first quarter.

The United States recorded quarterly growth of 0.8 per cent in the third quarter, up from 0.6 per cent previously, while its annual growth stood at 2.1 per cent, slightly below the previous quarter’s 2.2 per cent.

Meanwhile, employment remained unchanged in both the EU and euro area during the third quarter, following increases of 0.1 per cent in each during the second quarter.

On an annual basis, employment increased by 0.4 per cent in both areas, compared with 0.5 per cent in the euro area and 0.4 per cent in the EU in the previous quarter.

Eurostat’s figures are based on seasonally adjusted GDP data and represent a flash estimate, meaning they remain subject to revision.