Philenews

Economic Climate Deteriorates in Cyprus in February

Published February 26, 2026, 09:13
Economic Climate Deteriorates in Cyprus in February

The economic climate in Cyprus deteriorated in February 2026, with the Economic Confidence Index (ECI) recording a decrease of 1.3 points compared to January. The decline was mainly due to the deterioration of the business climate in the services sector and, to a lesser extent, consumer confidence. Businesses in the services sector assessed their recent financial situation negatively, while maintaining more optimistic expectations for the next quarter's turnover. Conversely, the business climate improved in retail trade, construction and manufacturing due to improved assessments of the current state of businesses and increased expectations for future activity. However, consumer confidence deteriorated as estimates for the future financial situation of households decreased and intentions for large purchases weakened. Despite the deterioration, assessments of the current financial situation of households remained positive. At the same time, the Economic Uncertainty Index rose due to increased consumer and business uncertainty, with the exception of the construction sector. However, the overall level of economic uncertainty in Cyprus remains relatively low, especially in the services and construction sectors.