Robust Annual Growth Recorded

Cyprus Statistical Service reported a 4.7% annual increase in industrial production during March, with the industrial production index reaching 116.7 points based on 2021 as the benchmark year. The figure exceeded levels recorded in March 2025 and reflected continued growth across several major industrial sectors.

Quarterly Improvements And Overall Impact

Growth recorded during March contributed to a 1.5% increase in industrial production during the first quarter of 2026 compared with the same period a year earlier. According to Cystat, the data indicate continued momentum across Cyprus’s broader industrial sector despite uneven performance between individual industries.

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Sector-Specific Breakdowns

Electricity supply recorded the strongest annual increase in March, rising by 19%. Mining and quarrying activity increased by 9.2%, while water supply and materials recovery rose by 3.9%. Manufacturing activity also expanded, recording a 2.8% increase compared with March 2025.

Manufacturing Trends And Challenges

Within manufacturing, production of basic metals and fabricated metal products rose by 8.5%. Rubber and plastic products increased by 7.1%, while other non-metallic mineral products recorded growth of 4.5%. Food, beverages and tobacco production also rose by 3.5%. At the same time, machinery and equipment manufacturing, motor vehicles and transport equipment production declined by 4.8%. Furniture manufacturing and machinery repair and installation activity also recorded annual declines of 3.9%.

Year-To-Date Sector Performance

For the January to March period, water collection, treatment and supply recorded the strongest increase at 10.1%. Electricity supply rose by 7.4%, while production of basic metals and fabricated metal products increased by 6.4%. Furniture manufacturing and related sectors declined by 6.2%, while machinery and equipment production fell by 5.4%. Textiles, clothing and leather products also remained under pressure, recording a 4.7% decline during the first quarter.

Conclusion

The latest data reflects continued expansion across several key industrial sectors in Cyprus, particularly electricity supply, mining and metal production. At the same time, weaker performance in machinery, furniture and consumer goods manufacturing highlights ongoing challenges across parts of the industrial economy.