Cyprus Quarterly Economic Outlook
Authors: G. Hardouvelis, I. Gkionis
Publication: December 2017, Year 2, Issue 5
Key points
- The solid economic performance continues into the fourth
quarter of 2017 with particularly visible positive signals
emanating from the property market - In Q3-2017 the economy expanded by 3.9% on an annual
basis, bringing the 9M-2017 performance to 3.8% - Rating agencies continue to assign a positive outlook in their
Cyprus ratings: DBRS was the latest agency to do so in
December within its long-term sovereign rating of BB+ - Fiscal performance continues solid despite upcoming elections:
- The general government surplus is expected to outperform the 1% target for this year
- The general government primary balance came to 4.8%
of GDP in the first ten months of the year
- Public debt is projected to drop below the 100% threshold in
2017 on early loan repayment by the Ministry of Finance to
the Central Bank - NPEs remain the single largest vulnerability of the economy
with banks lagging behind the Central Bank’s restructuring
targets for 2017 Q2