Cyprus Quarterly Economic Outlook, Year 2, Issue 4

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

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