Cyprus’ economy showed mixed but generally positive developments in early 2026, with gains in construction, tourism, and vehicle registrations offset by declines in trade, according to a report from the state statistical service (Cystat).
The service presented the above findings in its bimonthly bulletin, covering January to February 2026, which includes key economic indicators, alongside comparative data for the past four years.
The bulletin provides an overview of the Cyprus economy’s latest performance up to February 2026, based on data available as of mid-April.
Manufacturing production recorded a modest increase, rising by 1.5 per cent in January 2026 compared with the same month a year earlier.
A significant expansion was observed in the construction sector, with the total area of authorised building permits reaching 3,274,200 square metres in 2025, marking a sharp increase of 41.0 per cent compared with 2024.
Activity in the automotive sector also strengthened, as total motor vehicle registrations rose by 15.1 per cent to 9,020 units during the January to February 2026 period.
Within this category, private saloon cars increased to 6,381 units, reflecting a rise of 16.2 per cent year-on-year.
At the same time, light goods vehicles registrations climbed to 919 units, posting a notable increase of 18.7 per cent compared with the same period of 2025.
Inflation remained subdued, with the consumer price index recording a marginal increase of 0.3 per cent during the first two months of 2026 compared with the corresponding period of the previous year.
In contrast, external trade weakened, as total imports of goods fell to €2.1 billion, representing a decline of 4.5 per cent year-on-year.
Similarly, total exports of goods dropped more sharply to €766.2 million, marking a decrease of 18.5 per cent compared with January to February 2025.
The tourism sector provided a positive contribution, with tourist arrivals reaching 268,141 in the first two months of 2026, up from 245,860 in the same period of 2025.
This represented a solid increase of 9.1 per cent year-on-year, highlighting continued resilience in one of Cyprus’ most important economic sectors.