Cypriot Economy to Expand 3.5 Percent This Year
- Written by: Editor
- Posted: 2017-09-21
The third-largest lender in the country, the Hellenic Bank, declared that it projects the economy of Cyprus to increase with 3.5% this year and this growth will show a slower increase of 3.2% in 2018.
In this article, our lawyers in Cyprus further explain this statement.
Economic growth projections in Cyprus in 2016
When it issued its economic review in 2016, Hellenic Bank stated that the economy of the country would register a growth of between 2.5% and 3% of GDP.
Unemployment was expected to decrease to 11% and to further decline in 2018 below 10%. Our Cypriot lawyers can provide further information on this matter, as well as assistance in providing legal services in the country.
The report went on declaring that the inflation was expected to come back to a positive trend after three and a half years, to 0.8% and that it will continue to increase to 1.3% in 2018.
The Bank declared that “the better that expected macroeconomic performance, cannot justify complacency and does not signal a relaxation of efforts to further reform the economy”.
The Bank also signals that the important progress has been effectuated to restructure and restore the trust in the banking system of Cyprus, however, it adds that the number of non-performing loans (NPLs) is decreasing but is still high.
This caused an increase of the provisions for loan impairments to make sure that the collateral valuations are trustworthy and underpin the correct levels of provisioning. Our Cypriot lawyers are able to offer legal advice in case you have decided to open a business here.
Projections for the future Cyprus economy
On the other hand, in the Economic Review, the Economic Research Department stated that the economy of Cyprus could be negatively affected by the weakened growth of the Euro area and the slowdown of the output increase in UK and the future depreciation of the pound against the euro, due to the increased ambiguity after the referendum in the UK. Our attorneys in Cyprus can offer assistance related to opening a company in the country.
Also, the probable decrease of the Russian economic outlook and the raised geopolitical tensions in the Middle East and Eastern Mediterranean could produce adverse spillovers to the confidence in the local economy.
If you would like to know more about the economic expansion in Cyprus, or for any legal services, please get in touch with our Cypriot law firm.