Cyprus Economy Update

This alert covers updates regarding the recent upgrade of the Cyprus economy by Standard and Poor’s (S&Ps), tourist arrivals, the Cyprus economy growth rate, the number of sales contracts submitted to the Land Registry, the deposits in the Cyprus banking system, the interest rates on loans and deposits, the building permits, company registrations, unemployment, retail trade and exports.

Furthermore, Cyprus signed a deal for the transfer of natural gas via pipeline to Egypt, once extraction starts, and the Council of Ministers approved the revised scheme for granting Cypriot citizenship to non–Cypriot entrepreneurs/ investors.


S&P upgrades Cyprus


Ratings agency Standard & Poor`s upgraded on 16th September 2016 its assessment of Cyprus to BB. The outlook is positive.


S&P expects the Cypriot economy will expand by about 2.7% this year, surpassing their March 2016 forecast, with annual growth at about 2.5% in real terms in 2017-2019. It said that Cyprus’ recovery is supported by resilient business services, tourism, gradually reviving private consumption and construction. The restructuring in the financial sector is advancing, but the Agency expects it will be a few years before the sector contributes to economic growth.

They think that the sovereign`s budgetary position will continue improving over the next few years, standing at close to balance or in surplus, with gradually declining government debt.

S&P said that the positive outlook reflects its view that they could upgrade Cyprus within the next 12 months if its reduction of currently high levels of nonperforming loans accelerates, indicating a convergence of Cyprus` credit and monetary conditions, including the monetary transmission mechanism, with those of the Eurozone (Source:

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