Cyprus Quarterly Economic Monitor, Year 1, Issue 3

Cyprus Quarterly Economic Monitor
Authors: G. Hardouvelis, I. Gkionis
Publication: December 2016, Year 1, Issue 3

Key points:

  • The economy’s solid performance continued into the third quarter of the year
  • Both S&P and Fitch upgraded the long-term sovereign rating of Cyprus Republic
  • Cyprus qualifies for further sovereign rating upgrades as long as it remains focused on reducing NPLs and is committed to structural reforms
  • Fiscal consolidation achievements in the 2013-2015 MoU era allow for greater policy flexibility in the medium-term without compromising debt sustainability
  • The European Commission confirmed the fiscal targets of 2017 in the Draft Budgetary Plan, yet warned Cypriot authorities of deviations from the desirable structural fiscal target of zero

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