Cyprus’ economy grew faster than the European Union and euro area in the third quarter of 2026, even as its expansion eased from earlier in the year.

Gross domestic product rose 3.1% year over year, according to preliminary figures published by Eurostat. That was more than double the EU’s 1.5% growth rate and the euro area’s 1.3% increase.

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Growth Remains Strong, But Is Losing Pace

Cyprus’ annual growth slowed from 3.4% in the second quarter and 4.5% in the final quarter of 2025. On a quarter-over-quarter basis, GDP increased 0.5% between July and September, down from 1.2% in the previous quarter.

The quarterly result matched the EU average of 0.5% and exceeded the euro area’s 0.4% expansion. For both the EU and euro area, annual growth edged higher from the second quarter, when the respective rates were 1.4% and 1.2%.

Cyprus Ranks Among The Stronger Performers

Among EU member states with third-quarter data available, Ireland recorded faster annual growth than Cyprus, at 3.6%. Spain grew 2.7% and Bulgaria 2.5%. Sweden, Estonia and the Netherlands also posted annual growth above Cyprus, at 2.8%, 2.2% and 2.1%, respectively.

Quarterly comparisons show a more mixed picture. Poland’s economy expanded 0.8%, while Romania recorded growth of 2.1%, both ahead of Cyprus. Romania’s year-over-year increase, however, was just 0.3%, underscoring the difference between a strong quarterly reading and broader annual performance.

Germany grew 1.2% year over year and Italy 0.8%. France was the only EU member state with available figures to report an annual contraction, with GDP down 0.1%.

Volatility Shapes Ireland’s Results

Ireland recorded the EU’s strongest quarterly expansion, with GDP rising 5.5% after a 10.2% increase in the second quarter. That performance follows a 7.8% contraction in the first quarter, highlighting the volatility in its recent growth figures.

In the United States, GDP grew 0.8% quarter over quarter, up from 0.6% in the previous quarter. Annual growth was 2.1%, slightly below the prior quarter’s 2.2%.

Employment Stalls Across Europe

Employment was unchanged in both the EU and euro area in the third quarter, following 0.1% growth in each during the second quarter. Year over year, employment increased 0.4% in both areas. The euro area’s annual rate had been 0.5% in the previous quarter, while the EU rate was also 0.4%.

The GDP figures are seasonally adjusted and represent a flash estimate, meaning they may be revised as more complete data become available.