Cyprus Economic Outlook
December 20, 2019Annual growth picked up in Q3 on the back of more upbeat external demand, after slowing to an over four-year low in the second quarter. Domestically, although private consumption held solid and public expenditure growth was its highest in over two decades, shrinking inventories and cooling investment activity weighed heavily on demand. Heading into Q4, available data is mixed: Business confidence strengthened in October–November compared to Q3 while tourist arrivals picked up pace in the same period; however, households turned more pessimistic—boding ill for consumer spending. In other news, at the conclusion of its Article IV visit to the island on 27 November, the IMF welcomed the country’s robust economic recovery and authorities’ efforts to address vulnerabilities in the banking sector. It also, however, encouraged further progress towards ensuring an effective NPL resolution framework.
Cyprus Economic GrowthThe economy is expected to lose stride next year, although activity should remain strong overall. In particular, solid private consumption should continue to underpin growth, thanks to a tightening job market and a recovery in bank lending. Brexit-related uncertainties, a cooling tourism industry and lingering debt vulnerabilities all cloud the outlook. FocusEconomics analysts see growth at 2.8% in 2020, which is unchanged from last month’s forecast, and 2.6% in 2021.
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|Exchange Rate||1.12||0.65 %||Dec 31|
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Cyprus Economic News
Cyprus: Consumer prices, on an annual basis, return to growth after six consecutive months of decline in December
January 3, 2020
Consumer prices fell 0.2% from the previous month in December, contrasting November’s 0.3% month-on-month increase.
December 30, 2019
Industrial production rose 1.8% year-on-year in October, down from September’s revised 6.1% jump (previously reported: +5.0% year-on-year) which had marked best result in seven months.
December 9, 2019
Annual growth quickened to 3.4% in the third quarter, according to detailed national accounts data released on 9 December (Q2: +3.0% year-on-year).
December 5, 2019
Consumer prices rose 0.3% from the previous month in November, following October’s 0.4% month-on-month climb.
November 28, 2019
Industrial production rose a solid 5.0% year-on-year in September, up from August’s revised 4.2% increase (previously reported: +3.7% year-on-year) a marking a seven-month high.