Economic Forecast for Cyprus for 2018
- Written by: Editor
- Posted: 2018-02-12
The European Commission declared that it predicts the economic growth in Cyprus to reach 3.2% this year and 2.8% upsurge in 2019, after attaining a solid 3.8% in 2017. In this article, our lawyers in Cyprus further explain this news and other aspects related to the economic forecast for Cyprus.
How is this increase in Cyprus possible?
The European Commission added that this solid economic growth in Cyprus could be due to a strong private consumption and export development, in addition to a certain level of support from the public consumption.
The inflation rate in 2017 of 0.7% decreased surprisingly. The private consumption took advantage of the rapidly developing employment in all industries in the island and the increasing wages for employees, according to the European Commission.
The better conditions in the labor market which caused a market decrease in the jobless data, comprising also the long-term unemployment, are projected to continue to rise the wages and the employment levels in the country. Therefore, a further increase of the private consumption is expected.
The island, which is traditionally used to low unemployment levels, registered during the recent years a certain unemployment rate increase which reached at more than 16% in 2014. Our attorneys in Cyprus can offer assistance to open a company in Cyprus for investors who are interested in doing business here.
However, the exports of services were solid, mainly in the second and third quarters of last year, connected with the continuous tourism development in Cyprus.
The European Commission continued to declare that it expected a rise in the investment in 2018, mainly in the construction for residential property and hospitability industry projects.
Fitch’s upgrading for Cyprus
Fitch Ratings has upgraded the island’s Long-Term Foreign-Currency Issuer Default Rating (IDR) from “BB-” to “BB”, with a positive outlook.
After Fitch, the country is registering a solid improvement in the performance of the public finances. The budget was expected to attain a surplus of 1% of the GDP in 2017, after 0.4% in the previous year. Our lawyers in Cyprus can provide assistance in opening a company in the island.
The gross general government debt (GGGD) was projected to be just under 100% of the GDP in 2017 from 108% at the end of 2016.
For legal advice in setting up a business on the island, please contact our Cypriot law firm.