Cyprus Economic Outlook
May 31, 2022A flash estimate revealed that GDP grew 0.7% quarter-on-quarter in Q1, an identical pace to Q4 2021. While a detailed breakdown is not yet available, the services sector likely supported activity thanks to lower unemployment and reduced Covid-19 restrictions. Moreover, industrial output gained steam in January–February in annual terms. Turning to Q2, momentum is likely easing as food and energy price hikes due to the Ukraine War take their toll. Business and consumer confidence plummeted in April, boding poorly for consumption and private investment in the second quarter. While the recent lifting of all remaining travel restrictions will benefit the tourism sector, the reliance on Russian tourists will prevent the sector’s full recovery. Finally, in May the EU Commission recommended focusing on reducing non-performing loans and mitigating climate change risks.
Cyprus Economic GrowthGrowth is expected to slow this year due to the Ukraine war, with soaring inflation affecting private consumption and Russian tourism inflows dampened: Russia represented around 20% of tourist revenues in 2016–2019. However, a tighter labor market and the fading impact of the pandemic should soften the slowdown in household spending. FocusEconomics analysts see GDP growing 3.0% in 2022, which is unchanged from last month’s forecast. In 2023, our panel sees the economy expanding 3.3%.
Cyprus Economy Data
5 years of Cyprus economic forecasts for more than 30 economic indicators.
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Cyprus Economic News
May 30, 2022
Industrial output rose 6.9% compared to the same month of the previous year in March, which was above February's 3.7% increase.
May 18, 2022
Consumer prices increased 2.39% in April over the previous month, accelerating from the 1.83% rise seen in March.
May 17, 2022
According to a preliminary estimate, GDP growth slowed to 5.8% year-on-year in the first quarter, from 6.4% in the fourth quarter of last year, mainly due to a dwindling base effect.
April 28, 2022
Industrial output expanded 3.4% year-on-year in February (January: +4.7% yoy).
April 7, 2022
Consumer prices increased 1.83% in March over the previous month, picking up from February's 1.21% rise.