Cyprus’ economy grew 3.3% year-on-year in the second quarter of 2026, matching preliminary estimates and picking up from a five-year low and an upwardly revised 3.1% in the previous three-month period. Domestic consumption growth edged up to 5.2% from 5% in Q1, as stronger household consumption (5.4% vs 5%) more than offset slower government spending (4.5% vs 5.2%). In addition, gross fixed capital formation surged to 9.5% from 1.2%, providing a further boost to expansion. On the external front, imports of goods and services accelerated to 12.9% in Q2 from 11%, while export growth eased to 9.6% from 13.4%. On a quarterly basis, GDP expanded 0.8%, up from a 0.2% gain in the previous period.