Cyprus Economic Outlook
September 28, 2021A second estimate confirmed that GDP rebounded strongly in Q2, largely owing to a bounce-back in household consumption and a marked acceleration in fixed investment. Positive momentum appears to have carried over into Q3: A significant decline in the unemployment rate at the outset of the quarter, coupled with improving economic sentiment in July–August, hints at firming consumer spending. On top of this, goods exports jumped in July and the number of tourist arrivals soared in the same month. In other news, in mid-September the finance minister presented the draft 2022 budget to the cabinet. The plan sees spending at EUR 7.9 billion—similar to last year’s budget—and rests on a fiscal deficit forecast of 5.1% of GDP. Meanwhile, on 9 September the country received EUR 157 million—the first tranche of its allocation of the EU’s recovery fund—boding well for activity ahead.
Cyprus Economic GrowthGDP is seen expanding at a healthy pace this year, in line with the reopening of economies globally. Next year, a recovering tourism industry should buoy exports, while additional EU recovery fund disbursements should support domestic activity. The uncertain trajectory of the pandemic poses a key downside risk to the outlook. FocusEconomics analysts see GDP growing 4.4% in 2021. In 2022, our panel sees the economy expanding 4.1%, which is unchanged from last month’s forecast.
Cyprus Economy Data
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Cyprus Economic News
October 7, 2021
Consumer prices slid 0.06% in September, contrasting August’s 1.55% rise and falling for the first time since January.
September 29, 2021
Industrial output rose 5.6% compared to the same month of the previous year in July, which was a deterioration from June's 6.9% increase.
September 2, 2021
Consumer prices jumped 1.55% in August over the previous month, following the 0.11% rise in July.
August 31, 2021
A second reading of national accounts data confirmed that the economy bounced back in the second quarter, growing 12.8% year-on-year, above the 2.0% contraction seen in the first quarter.
August 30, 2021
Industrial output growth moderated to 4.6% in annual terms in June, following May’s 12.0% expansion, logging the lowest print in four months.