Industrial production in Cyprus declined by 2.4% year-on-year in February 2026, following a downwardly revised 2.7% increase in January. This was the first contraction in industrial activity since November 2024. The downturn was primarily driven by a steep fall in electricity supply (-12.7% vs 18.6% in January) and a drop in manufacturing output (-1.2% vs 0.5%), while the contraction in mining and quarrying moderated (-2.1% vs -16.1%).
By contrast, activity strengthened in water-related sectors and materials recovery. Output grew more quickly in water supply and materials recovery (4.7% vs 4.1%), water collection, treatment and supply (8.3% vs 7.0%), and materials recovery alone (0.3% vs -0.1%). Over the first two months of 2026, industrial production was up 0.1% compared with the same period a year earlier.
