Cyprus Current Account Balance (EUR bn)

Preliminary national accounts data revealed that annual growth slowed slightly in Q4. That said, the print showed that wholesale and retail trade were strong contributors; consumers loosened their purse strings as price pressures softened throughout the quarter. Moreover, the hospitality sector performed well, despite a slowdown in tourist arrivals during the period. In politics, on 12 February, centrist independent candidate Nikos Christodoulides was elected president in a runoff vote and is set to assume office on 1 March. Economic policy is unlikely to change significantly due to a heavily fragmented Parliament. Meanwhile, on 23 February, president-elect Christodoulides met with Ersin Tatar, president of the Turkish Republic of Northern Cyprus. The meeting was hosted by the head of the U.N. peacekeeping mission on the island and was described as constructive.