Cyprus and International, Economic Analysis

Cyprus Quarterly Economic Outlook, Year 2, Issue 5

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

Download Cyprus Quarterly Economic Monitor, Year 2 | Issue 5 pdf