Cyprus economic and employment trends

Cyprus is experiencing positive economic and employment trends. In July 2026, the civil service workforce grew by 0.6% to a total of 53,747 employees, a change driven largely by a 2.6% increase in the Education Service and a 0.7% rise in Security Forces, despite a 1.0% decline in the Public Service.

President Nikos Christodoulides has projected an economic growth rate of 3.5% for 2026, suggesting this may be among the highest in the Eurozone. During a meeting with the Executive Committee of the Employer's Association of Cyprus in late August 2026, he reiterated that labor market performance is the best recorded since 1999 and that the unemployment rate has fallen to levels seen in 2008. The government is pursuing structural changes, including tax reforms to increase disposable income and pension reforms to ensure the sustainability of the Social Insurance Fund while providing dignified pensions.

Recent data indicates the economy demonstrated strong growth in the first half of 2026, with real GDP increasing by 3.3%—a rate more than triple the Eurozone average of 1% for the same period. Finance Minister Makis Keravnos attributed this to diverse sectors, including wholesale and retail trade, information and communications, financial and insurance activities, and construction.

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