FX.co ★ Cyprus Q1 GDP Growth Slows to 5-Year Low

The Cypriot economy expanded by 3.0% year-on-year in the first quarter of 2026, down from 4.5% in the previous quarter and in line with preliminary estimates. This was the slowest growth rate since Q1 2021, reflecting a broad-based moderation across key sectors. Activity weakened in agriculture, forestry, and fishing (0.1% vs 1.1% in Q4), mining and quarrying (2.0% vs 4.3%), manufacturing (1.9% vs 4.7%), and construction (4.9% vs 9.2%).

From the expenditure perspective, growth in final consumption expenditure accelerated to 4.9% from 4.0%, driven by stronger household spending (5.1% vs 3.3%). In addition, gross fixed capital formation returned to positive territory, increasing by 1.5% after a 15.2% contraction in the previous quarter. Net trade also made a positive contribution, as exports rose by 10.5% and imports by 10.4%.

On a quarterly basis, GDP grew by 0.2%, a sharp slowdown from 1.4% in the preceding quarter and the weakest quarterly expansion since Q4 2022.