Cyprus GDP Set To Grow Over The Next Two-Year-Period According To Commission Forecast

13/02/2020

The economy in Cyprus will grow by 3.2% in 2019, 2.8% in 2020 and 2.5% in 2021, according the European Commission`s Winter Economic Forecast, published today in Brussels, and presented by Commissioner Paolo Gentiloni. Inflation will be 0.8% in 2020 and 1.2% in 2021 and "downside risks are primarily external notably a potential slowdown in foreign demand for residences and tourism services," the CNA reported.

More specifically, according to the European Commission "Cyprus’ real GDP grew strongly in the third quarter of 2019 (3.4% y-o-y), driven by buoyant domestic demand." But "net exports, by contrast, were a drag on growth." The EC states that "economic sentiment stabilised in 2019 and it even improved in early 2020" and "business sentiment remained strong in services and manufacturing, but deteriorated in construction," while "consumer sentiment and business sentiment in retail trade stabilised suggesting that growth might moderate in the months to come."

Furthermore, according to the Commission "private consumption is nevertheless expected to remain resilient, given positive labour market expectations and rising wages" and the unemployment rate fell rapidly to 7.2% in the third quarter of 2019, the lowest level since 2011."

The EC report states that "public spending is also set to boost growth, driven by increasing public wages and government expenditure in relation to the newly established National Health System." "Investment in residential buildings is a key driver of activity and is expected to continue in the medium term, as suggested by improved order books and increasing building permits," the EC states. 

Furthermore, "new bank lending to domestic non-financial companies and households is only slightly picking up. Net exports, however, contributed negatively in the first three quarters of 2019."

"Amid the still subdued external environment and increasing competition over tourism from neighbouring countries, net exports are likely to continue decreasing over the coming months with a slight recovery in 2021," the EC warns.

Overall, "real GDP is projected to grow by 3.2% in 2019, 2.8% in 2020 and 2.5% in 2021".

Furthermore, "price pressures remain subdued. HICP inflation stood at 0.5% in 2019, even lower than in 2018" and "a major factor behind the low inflation was the dip in energy prices in the second half of the year, compared to high increases in the corresponding period in 2018." In addition, "non-energy industrial goods inflation continued to decline. Inflation in services is picking up, mainly reflecting increasing prices for housing related services."

Finally the EC explains that "rising disposable income is expected to fuel inflation but the rate should remain somewhat contained due to the bottoming-out of energy base effects." Overall, "headline inflation is projected to reach 0.8% in 2020 and 1.2% in 2021."


 


 

乐浦地产是 可用的項目

查看所有项目

珊瑚湾海滨别墅

Coral Seas Villas is located on the coastline in a generally pristine area within walking distance to the Coral Beach Hotel, a 15 minute drive to the metropolitan Paphos ...

阿多尼斯海滨别墅

阿多尼斯海滨别墅是乐浦地产新推的超豪华项目。它位于帕福斯最优越的地段,与其大获成功的姐妹项...

Limassol 德尔玛

德尔玛项目诠释了塞岛建筑设计的“新浪潮”:这座曲线设计的高楼充分利用了绵延170多米的海岸线,使每个公寓的住户均能尽...

卡瑞马斯村

Kamares村是Leptos房地产公司在塞浦路斯创造的最高档物业,在东地中海最别具一格。该项目的特点是其精致的石拱门和优越的地理...