Cliff on the ocean in Cyprus

Cyprus GDP Q1 2022

Cyprus: GDP growth loses momentum in the first quarter but remains healthy

According to a preliminary estimate, GDP growth slowed to 5.8% year-on-year in the first quarter, from 6.4% in the fourth quarter of last year, mainly due to a dwindling base effect. On a working-day and seasonally-adjusted quarter-on-quarter basis, economic growth was stable at the previous period’s 0.7%.

Output likely grew notably in the hotels and restaurant sector, with revenue from tourism reaching over 70% of its pre-pandemic level in January–February. Industrial production should also have proved to be a driver for growth, as industrial output gained steam in January–February compared to the previous quarter.

Turning to Q2, the economy is expected to continue benefiting from improved dynamics in the tourism sector as travel restrictions were further eased from mid-April. That said, the reliance on Russian tourists will impede the sector’s full recovery due to EU sanctions on Russia. Moreover, the domestic economic panorama has darkened since the war in Ukraine broke out, as surging energy and food prices will likely cap household spending.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest