Greek and Cypriot economies show resilience despite geopolitical pressures

Eurobank’s analysis of Greece’s first‑quarter 2026 data shows the economy maintaining a modest pace of growth amid heightened geopolitical tension from the Persian Gulf conflict. Industrial production rose 3 % quarter‑on‑quarter and retail sales grew 1.9 % quarter‑on‑quarter, while employment slipped 0.4 % quarter‑on‑quarter. Inflation pressures and household savings deficits pose risks to private consumption in coming quarters.

The European Commission’s latest country‑specific recommendations confirm that Cyprus remains among the fastest‑growing economies in the EU, backed by strong fiscal surpluses, rapid debt reduction and sustainable public‑finance stability. The report praises progress on the Recovery and Resilience Plan, labour‑market performance and reforms in research, innovation and the green transition, while noting medium‑ and long‑term challenges in productivity, energy and skills.

Both assessments underline the relative resilience of Mediterranean economies within the broader Eurozone slowdown, highlighting the importance of fiscal discipline and targeted reforms to mitigate external shocks.