Cyprus Economic Outlook
October 27, 2020Available data suggests that the economic panorama remained subdued in Q3, following the unprecedented GDP drop in Q2. On the external front, tourist arrivals nosedived by more than 80%, on average, in Q3, while merchandise exports dropped markedly in July–August, as Covid-19 continued to suppress foreign demand. On the domestic side, consumers turned only marginally less pessimistic in Q3 compared to Q2—the peak of the health crisis—while the unemployment rate rose in August, likely dragging on household consumption. Moving to Q4, a spike in new Covid-19 infections prompted the government to introduce new restrictions in mid-October, boding ill for recovery at the tail-end of the year. More positively, on 2 October, Fitch Ratings affirmed the country’s BBB- credit rating with a stable outlook, citing its solid governance, strong institutions and sound fiscal policy.
Cyprus Economic GrowthGDP is seen dropping at the sharpest pace since 2013 this year, before rebounding in 2021 on the back of recovering domestic and foreign demand, and supported by EU funding. However, the unpredictable course of the pandemic, uncertainty around Brexit negotiations, with the UK being a major trading partner, and the country’s significant public debt load, cloud the outlook. FocusEconomics analysts see GDP growing 4.5% in 2021, which is down 0.4 percentage points from last month’s forecast. In 2022, our panel sees the economy expanding 4.0%.
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
November 5, 2020
Consumer prices increased 0.56% over the previous month in October, slightly lower than September’s 0.86% rise.
October 29, 2020
Industrial output dropped 8.8% in annual terms in August, a steeper contraction from July’s 5.4% decline.
October 5, 2020
Consumer prices increased 0.86% from the previous month in September, slightly higher than August’s 0.59% rise.
September 29, 2020
Industrial production declined 5.4% year-on-year in July, a softer fall than June’s 9.0% drop.
September 3, 2020
Consumer prices rose 0.59% from the previous month in August, following July’s 0.76% decline.