Domestic demand drives Cyprus economic growth as Middle East crisis triggers slowdown in mid-2026, Central Bank says

Strong domestic demand remains the primary driver of economic growth in Cyprus for 2025 and the three-year period spanning 2026-2028, while external demand continues to make a positive but more limited contribution, the Central Bank said.

According to the Central Bank’s analysis, the expansion of the economy has been supported by an increase in private consumption, robust investment activity, rising public consumption, and a positive performance in net exports. Private consumption grew by 3.3%...