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.
Get a sample report showing our regional, country and commodities data and analysis.
|Exchange Rate||1.12||0.65 %||Dec 31|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Cyprus Economic News
January 27, 2023
— After the first round in early February, the election is expected to go to a second round. — Nikos Christodoulides is the front-runner. — Economic policy stability can be expected regardless of the outcome. What is happening: On 5 February, the country will head to the polls to elect a new president.
January 18, 2023
Harmonized inflation dropped to 7.6% in December, following November’s 8.1%.
December 29, 2022
Industrial output slid 1.0% year on year in October (September: -1.3% yoy).
December 19, 2022
Harmonized inflation dropped to 8.1% in November, following October’s 8.6% outturn.
December 1, 2022
GDP growth waned to 5.5% year on year in the third quarter, from 5.9% in the second quarter.