Cyprus recorded one of the European Union’s stronger economic performances in the second quarter of 2026, with GDP growth accelerating to 0.8% from 0.5% in the first quarter.
On an annual basis, GDP increased 3.3%, up from 3.0% in the previous quarter, according to Eurostat. That outpaced quarterly growth of 0.6% in the euro area and 0.7% across the EU, while annual growth reached 1.2% and 1.4%, respectively.
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Ireland Leads As Austria Contracts
Ireland posted the EU’s strongest quarterly growth at 10.2%, followed by Slovenia at 1.8% and Lithuania at 1.7%. Austria was the only member state to record a contraction, with GDP falling 0.1%.
Employment Growth Supports Cyprus Economy
Cyprus also recorded stronger employment growth, with employment rising 0.5% in the second quarter after remaining flat in the first. Year over year, employment increased 1.6%, although that was slower than the 2.0% gain recorded in the first quarter.
Across the EU and euro area, employment increased 0.1% in the quarter. Portugal posted the strongest increase at 1.0%, followed by the Czech Republic and Malta at 0.9%, while employment fell 0.8% in Finland and 0.4% in Greece.
Trade Provides Strong Support
Hours worked increased 0.1% quarter over quarter in both the EU and euro area, and were up 0.8% and 0.7%, respectively, from a year earlier.
Household consumption contributed 0.2 percentage points to quarterly growth in both regions, while government consumption had little impact. Investment was broadly flat in the euro area and added 0.1 percentage points to EU growth, while inventory changes reduced growth by 0.5 percentage points in both.
Net trade provided the strongest boost, contributing 0.9 percentage points to euro area growth and 0.8 percentage points to EU growth.
US Growth Slows By Comparison
US GDP increased 0.4% in the second quarter, down from 0.5% in the first. Annual growth slowed to 2.1% from 2.7%. For Cyprus, the latest figures show growth accelerating above the EU average alongside stronger employment, while trade and domestic demand continued to support broader European activity.
