WEDNESDAY, 3 MAR 2021

 

CONNECT

Facebook Linked In Twitter
GAP Vassilopoulos
GloriaJeans_266x90px
IMH LTD

Kokkinos Stresses Need For Coordinated Actions & Investments For Green -Digital Transition

Merkel Faces Growing Pressure to Ease Germany’s Covid Curbs

IMH LTD

ECONOMY

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

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

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."

MORE ON ECONOMY

ICT Industry Highest Paying Sector In Most Member States For 2018

How much people earn varies considerably between economic activities. Which sectors ...

Health Minister: We Must Avoid A Setback

Health Minister Constantinos Ioannou said that a setback must be avoided and urged people ...

Analysis: Central banks will happily ignore inflation-mongers

The world’s biggest central banks will happily live with higher inflation and ...

FROM AROUND GOLDNEWS

   

EU Changes Its Energy Labelling Rules

To help EU consumers cut their energy bills and carbon footprint, a brand new version of the widely-recognised EU energy label will be applicable in all shops ...
   

Cyprus GDP Output Loses €1.1 Billion Amid Covid-19 Crisis

Cyprus GDP lost €1.1 billion in 2020, with economic activity severely affected by the coronavirus pandemic and the ensuing restrictions that impacted ...
   

Kokkinos Stresses Need For Coordinated Actions & Investments For Green -Digital Transition

Deputy Minister of Research, Innovation and Digital Policy, Kyriakos Kokkinos stressed the need to coordinate actions and investments at national and European ...
   

2nd Cyprus Forex Summit: FX Risk Exposure of Private Debt

IMH is organising the 2nd Cyprus Forex Summit as a digital event on Thursday, 8 April 2021. Distinguished speakers from Cyprus and abroad will present the ...
   

CIM Summit 2021: Navigating the Future

The Cyprus Institute of Marketing (CIM) is organising the CIM Summit 2021 ‘Navigating the Future’ for the 13th consecutive year. The Summit will be ...
   

Zoom Sees Revenues Soar 326% Year-Over-Year As Office Life Remains On Hold

A year of working from home may have driven many of us to the brink but it’s been great news for Zoom, the video conferencing business.   On ...
   

GOLD – March Issue Presents: Premium Healthcare In Cyprus

Cyprus has always had a large, thriving healthcare industry, catering not only for local residents but also for a growing number of foreign visitors who view ...
   

Office Market: The Avalanche Approaches For Companies, Workers, And Landlords

Based on responses from more than 4,300 office-based workers and 1,500 Senior Decision Makers on behalf of their employees, surveyed across six countries, ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Legal_19/02-13/04
Enter_Cy_10/20-4/23

IMH LTD