Positive Economic Prospects for Cyprus in 2016
- Written by: Bridgewest
- Posted: 2016-05-06
Investors can have many business opportunities in Cyprus, as the local economy is developing in a solid pace. Signs of economic increase have been noticed in the decreasing level of unemployment, which reached a record-level. At the same time, the forecasts of the European Commission (EC) for the current year provide a positive sentiment, as the Cypriot economy is set out to increase by 1,7% throughout this year. Those who are considering establishing a company in Cyprus can receive legal advice from our team of attorneys, who can provide assistance for the incorporation of the business or on the taxation system applicable here.
Cypriot economy, increase of 1,7% in 2016
The Cypriot economy is showing solid signs of economic development, according to a report of the EC, which presented a forecast on the local economy. If in 2015, the economic growth was situated at 1,6%, in 2016 the growth will be set out at 1,7%. Furthermore, the EC considers that in 2017, the increase will be of 2%.
The forecasts for the economic development for the current year are estimated at 1,6% - as mentioned by the International Monetary Fund, and at 2% - as the Cypriot authorities (represented by the Ministry of Finance) have mentioned.
The Gross Domestic Product (GDP) increase has already registered positive results on the local market, and one of the main aspects here refer to the unemployment level. In 2015, the rate of unemployment was situated at 15,1%, while the estimates for 2016 are showing a further decrease, down to 13,4%. In 2017, the unemployment rate is expected to decrease to an even lower rate, of only 12,4%; our team of Cypriot lawyers can offer more details on the local economy.
Positive economic indexes for Cyprus
It is important to know details about another positive economic aspect, which shows that the Cypriot business market is solid and reliable. The fiscal deficit for the current year is estimated at 0,4%, compared to a much higher rate, of 1%, in the previous year.
Economic fields in which the unemployment rate decreased significantly are the following:
• construction sector;
• accommodation sector;
• catering industry;
Persons who need further information on the Cypriot economic development can address to our local law firm for a detailed consultation on this matter.