FX.co ★ Cyprus Q2 GDP Growth Confirmed at 3.3%

Cyprus’ economy expanded by 3.3% year-on-year in the second quarter of 2026, in line with preliminary estimates and accelerating from an upwardly revised 3.1% in the previous quarter, which had marked a five-year low. Growth in domestic demand edged up to 5.2% from 5.0% in Q1, as stronger household consumption (5.4% vs 5.0%) more than compensated for a slowdown in government spending (4.5% vs 5.2%). Gross fixed capital formation also strengthened markedly, jumping to 9.5% from 1.2%, giving additional momentum to overall growth. Externally, imports of goods and services accelerated to 12.9% in Q2 from 11.0%, while export growth moderated to 9.6% from 13.4%. On a quarterly basis, GDP increased by 0.8%, up from a 0.2% rise in the first quarter.