Cyprus Economic Outlook
September 1, 2020The economy plunged at a record rate in Q2 according to a preliminary estimate, as the pandemic and subsequent restrictions hammered the tourism, construction and transportation sectors. Moreover, the wholesale and retail trade sector also plunged amid a spike in the unemployment rate and plummeting consumer confidence. Turning to Q3, the economy is likely recovering somewhat, with economic sentiment improving in July and August. Furthermore, lockdown measures have been eased notably since April and borders with some countries reopened in June, which should be providing some relief to the services sector. Less positively, consumer confidence tanked in August amid rising new Covid-19 cases. Meanwhile, it was recently announced that Cyprus is set to receive EUR 479 million in loans from the EU under the SURE scheme, which bodes well for the recovery ahead.
Cyprus Economic GrowthThe economy is expected to contract markedly this year due to the Covid-19 shock. Frail demand from key trading partners and fewer tourist arrivals will batter the external sector. Domestically, household consumption will suffer amid a surge in unemployment while investment will retreat on elevated uncertainty. The country’s large debt load poses a key risk. FocusEconomics analysts see GDP shrinking 6.9% in 2020, which is down 0.1 percentage points from last month’s forecast, before growing 5.0% in 2021.
Cyprus Economy Data
5 years of Cyprus economic forecasts for more than 30 economic indicators.
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Cyprus Economic News
September 3, 2020
Consumer prices rose 0.59% from the previous month in August, following July’s 0.76% decline.
August 31, 2020
GDP collapsed 11.9% year-on-year in the second quarter, contrasting the 0.9% growth in the first quarter and marking the worst reading on record, as the pandemic and related restriction measures took their toll on economic activity. Looking at the domestic economy, household spending plummeted 7.3% on an annual basis in Q2, contrasting Q1’s 1.8% expansion and marking the sharpest contraction since the Cypriot banking crisis in 2013.
August 28, 2020
Industrial production declined 10.3% year-on-year in June, falling at a softer pace than May’s 16.5% drop.
August 14, 2020
Cyprus’ economy deteriorated significantly in the second quarter of the year, reflecting the impact of the Covid-19 pandemic and associated restrictions.
August 6, 2020
Consumer prices declined 0.76% from the previous month in July, following June’s 0.42% slip.