A series of statistical figures pointed to a positive course for the Cypriot economy over the last few months.
Cyprus recorded a notable easing of inflation at the start of 2026, placing it among the European Union’s lowest-inflation economies, according to Eurostat. Annual inflation in Cyprus measured 1.2% in January, a sharp drop from 2.9% a year earlier.
Unemployment in Cyprus dropped from 4.5% in October-December 2024 to just 4% in the final quarter of 2025, according to CyStat, at the conclude of a year that also saw a 3.6% yearly growth in industrial output.
The trajectory of public debt remains downward and is projected to have fallen below 60% of GDP in 2025 when data are announced, declared the chairman of the Cyprus Fiscal Council, Michalis Persianis, who estimates that the downward trconclude in debt will continue this year and possibly in 2027.
It was not all good news, though: Economic sentiment in Cyprus weakened in February, as the Economic Sentiment Indicator (ESI-CypERC) fell by 1.3 points compared with January, reflecting softer business confidence in services and a decline in consumer confidence.
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