Cyprus Economic Outlook
September 25, 2018The latest GDP data showed that robust momentum was maintained in Q2, with the economy growing at the 3.9% annual pace logged in Q1. A nearly 50% surge in capital spending largely underpinned the expansion. Meanwhile, available data points to the extension of healthy economic activity into Q3: The labor market continues to improve—the unemployment rate dipped to a seven-year low in July—while a record number of tourists visited the island in July–August. Compounding the good news, on 14 September S&P Global Ratings raised the country’s credit rating back to investment grade after more than six years in “junk” status. Besides strengthening confidence in the economy, the move should alleviate borrowing costs for the Cypriot government and banks.
Cyprus Economic GrowthAlthough the economy is expected to lose some steam next year, growth should remain strong thanks to a growing tourism industry and tightening labor market. A highly-leveraged private sector and a banking system laden by non-performing loans cloud the outlook, however. FocusEconomics panelists project growth of 3.6% in 2018 and 2.9% in 2019, down 0.1 percentage points from last month’s estimate.
Cyprus Economy Data
5 years of Cyprus economic forecasts for more than 30 economic indicators.
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|Exchange Rate||1.16||0.65 %||Oct 12|
|Stock Market||68.2||-0.44 %||Oct 12|
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