Cyprus Economic Outlook
June 2, 2020The economy lost stride in Q1, with GDP growth easing to a five-year low as the coronavirus pandemic started to take its toll. Although domestic demand rebounded strongly, exports suffered on subdued foreign demand—dragging on the overall upturn. Turning to Q2, the economy is poised to take a more drastic hit amid the virtual halt in activity in April. Consumer confidence slumped to a six-year low in April–May, while business sentiment plunged to a record low in the same period, boding ill for household and capital spending. On a more positive note, the country is currently underway on its gradual lifting of lockdown measures, with 9 June slated for allowing inbound travel. In a bid to reboot the economy, on 27 May the government announced a second fiscal package comprising of EUR 430 million in direct assistance and more than EUR 1.0 billion in credit facilities.
Cyprus Economic GrowthThe Covid-19 outbreak and subsequent confinement measures will deal a massive blow to the economy this year, with the vital tourism sector expected to be particularly hard hit. Domestic demand will also suffer as households pare back their spending and investment is subdued by weak sentiment. The large public and private debt burden is a key downside risk ahead. FocusEconomics analysts see GDP shrinking 7.0% in 2020, which is up 0.4 percentage points from last month’s forecast, before growing 5.9% in 2021.
Cyprus Economy Data
5 years of Cyprus economic forecasts for more than 30 economic indicators.
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Cyprus Economic News
July 2, 2020
Consumer prices declined 0.4% from the previous month in June, following May’s 0.1% slip.
June 30, 2020
Industrial production collapsed 35.3% year-on-year in April (March: -11.1% yoy), marking the sharpest drop on record.
June 4, 2020
Consumer prices fell 0.1% from the previous month in May, following April’s 1.5% drop.
May 29, 2020
GDP growth eased to 0.9% year-on-year in the first quarter from 3.4% in the fourth quarter on partial Covid-19 effects.
May 28, 2020
Industrial output plummeted 12.7% year-on-year in March (February: +3.8% yoy), marking the steepest drop since November 2013.