Economic Analysis

Cyprus Quarterly Economic Outlook – October 2017

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Cyprus Quarterly Economic Outlook
Authors: G. Hardouvelis, I. Gkionis
Publication: October 2017, Year 2, Issue 4

Key points

  • During 2015 and 2016 the Cypriot economy expanded much
    faster than previously perceived, with the Cyprus Statistical
    Service revising the GDP growth rate up to 2.0% and 3.0%
    respectively, from the earlier estimates of 1.7% and 2.8%
  • In 2017 Q2 the economy expanded by 3.5% on an annual
    basis, bringing the 1H-2017 performance to 3.6%
  • The solid economic performance continues into the third
    quarter of 2017 with particularly visible positive signals
    emanating from the property market
  • Cyprus is an inch away from investment grade status with
    S&P upgrading the outlook of Cyprus from stable to positive
    within the long-term sovereign rating of BB+
  • Fiscal performance is impressive for an election year as the
    general government primary balance came to 2.3% of GDP in
    the first eight months of the year
  • NPEs remain the single largest vulnerability of the economy
    with banks lagging slightly behind the Central Bank’s
    restructuring targets for 2017 Q1

Download Cyprus Quarterly Economic Outlook, Year 2, Issue 4