Reports on current economic developments in the Cypriot economy.
Hellenic Bank’s Economic Review: First Half 2019
Positive growth dynamics continue
Hellenic Bank assesses that Cyprus' macroeconomic outlook is positive and is accompanied by a significant increase in real gross domestic product during 2018, robust employment growth and further improvement in key domestic indicators. Growth is expected to be supported by private consumption and investment and by an improving and robust labour market. Public expenditure is also expected to contribute positively to growth through higher investment expenditures. According to the baseline macroeconomic scenario of Hellenic Bank’s Economic Research Department, growth is expected to be 3,4% in 2019 and 3,2% in 2020.
- Growth is expected to remain strong in the medium-term horizon
- Positive labour market dynamics and investment supporting domestic economy
- Significant progress towards the stabilization of the banking system
- Fiscal discipline must continue unobstructed
- The current growth momentum should be used for the implementation of reforms
Fourth Quarter 2018
Quarterly Market Review
The broad-based economic recovery gathered pace in 2017, with real GDP increasing by an annual 4,2%. The increased activity was broad-based. Developments are currently driven by increases in private consumption and investment, mainly large construction buildings.