Cyprus Quarterly Economic Monitor
Authors: G. Hardouvelis, I. Gkionis
Publication: August 2016, Year 1, Issue 2
Key points:
- The economy continued to surprise positively in the second quarter of the year
- BREXIT doesn’t entail only challenges but also presents significant opportunities for the Cypriot economy as long as authorities take the right steps
- New bond issuance paves the way for the streamlining of debt repayments in 2019-2020
- Fiscal consolidation achievements in the 2013-2015 MoU era allow for greater policy flexibility in the medium-term without compromising debt sustainability
- The main risks ahead are concentrated in the financial sector and the ability to quickly reduce the high NPL ratio
- Another risk is complacency following the exit from the Adjustment Program: Cyprus has a political window of one year to carry on with the remaining reforms in the public sector and in privatizations
Download Cyprus Quarterly Economic Monitor, Year1 | Issue 2 pdf