Cyprus economy shows strong growth and declining debt

Cyprus's economy demonstrated strong growth in the first half of 2026, with real GDP increasing by 3.3%. This rate is more than triple the Eurozone average, which was limited to 1% during the same period.

Finance Minister Makis Keravnos attributed the growth to a diverse range of sectors, including wholesale and retail trade, information and communications, financial and insurance activities, and construction. This broad distribution is intended to ensure economic durability.

Fiscal indicators also showed improvement. The general government surplus for the period of January–July 2026 reached €770.6 million, or 2.0% of GDP. Additionally, public debt fell to 55.0% of GDP at the end of 2025, dropping below the 60% threshold for the first time since 2009. Unemployment rates also remain at their lowest levels in a decade.