Investor Presentaiton
Solid near-term growth outlook
• Growth momentum of recent years has recently
slowed down from 3,9% in 2018 to 3,2% over H1-
2019, albeit remaining at above eurozone levels. The
deceleration is attributed to a less favourable
external environment affecting the European
economy.
• Growth is broad-based and derives from higher
demand in the sectors of tourism, construction,
business services and retail trade. The positive
developments are partly attributed to the gains in
price competitiveness recorded in recent years. The
only sector recording negative growth rate is financial
services due to its deleveraging.
On the expenditure side, consumption has been the
main driver attributed to higher employment level
and disposable incomes. Additionally, mainly
foreign-financed private investment has boosted
growth with high value added projects in the
tourism, energy and education sectors.
Real GDP growth (% change)
-1,3
2014
2,0
4,8
4,5
3,9
3,2
2,9
2,7
2,7
2016
2018
2020f
GDP (Index, 2000=100)
250
200
150
100
50
Actual
MoF forecast
2022f
Cyprus
Euro Area
0
2000 2002 2004 2006 2008 2010 2012
2014
2016 2018
Source: Cyprus Statistical Service, Ministry of Finance
Note: "f" denotes forecasts by the Ministry of Finance, as of September 2019. All forecasts are based on assumptions and there can be no assurance they will be realised.
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