Cyprus economy uptrend continues in 2018

During the first quarter of 2018, the economy of Cyprus rose by 0,8%, compared with Q1 of the previous year.

The European Bank for Reconstruction and Development readjusted its forecast for the economic growth of Cyprus in 2018 from 2,5% to 3,2%, while the European Commission estimates 3,6%.

The seasonally adjusted annual 3,8% GDP increase of Cyprus during the first quarter 2018 outperforms the GDP increase of 2,5% in the Euro area (EA19) and of 2,4% in the EU28 area, compared with the first quarter 2017.

In 2017, Cyprus generated a budgetary surplus of EUR 344 Mio. (equal to 1,8% of GDP), compared with EUR 59 Mio in 2016), according to Eurostat.

The GDP of Cyprus increased from EUR 18.219 billion in 2016 to € 19.214 billion in 2017, while the government’s debt declined from 106.6% of GDP in 2016 to 97.5% of GDP in 2017.

The average government debt of the countries in the Euro area stood at 86.7% at the end of 2017, and in the EU28 at 81.6%. The lowest ratios of government debt to GDP were recorded in Estonia (9.0%), Luxembourg (23.0%), Bulgaria (25.4%), the Czech Republic (34.6%), Romania (35.0%) and Denmark (36.4%).

The Industrial Production Index of Cyprus in January 2018 increased 10% compared with January 2017.

Unemployment in Cyprus dropped to 11% in Q4 2017, from 17,4% in 2013, after the crises.

New car registrations in Cyprus during January to April of 2018 jumped up by 24%, compared with the same period of the previous year.

Real estate sales hit a record in April 2018, with an increase of 29% in Cyprus, as per the data of the Land Registry compared with April 2017. The absolute champion was the Famagusta area with an increase of incredible 79%, followed by Nicosia with 46%.

Real estate sales during January to April 2018, compared with the same period in 2017, went up by 38%. A breakdown on regional figures for the same period shows an increase of 76% in the Famagusta region, 60% in the Nicosia region, 42% in the Limassol region, 36% in the Pafos region and 7% in the Larnaca region.

The total number of real estate sales contracts filed with the Land Registry during the period of January to April 2018 was 2.784, compared with 2.011 during January to April 2017.

Prices for houses and apartments rose by 3,3% during 2017.

As per Eurostat, the trend of deflation in Cyprus continues for its fifth month, with a rate of 0,3% (-03% inflation) in April 2018. The deflation rate in March 2018 was 0,4% (-04% inflation). The annual inflation rate of the Euro area in April 2018 was 1,2%.

Sources: Eurostat, Cystat, European Commission, Cyprus Land Registry