Group Financial Results
Group Financial Results for the year ended 31 December 2020
•
GDP contraction of 5.1% in 2020, significantly outperforming Euro area
Open, small and flexible economy which has demonstrated
historically that it can quickly recover from economic crises
Unprecedented policy response mitigating COVID-19 impact;
Re-introduction and tightening of containment measures in
4Q2020 for the second wave; expected to lead to some loss
of momentum in economic recovery in early 2021
Successful management of the pandemic to date; Cyprus
ranks first among EU countries in terms of coronavirus testing
and fifth globally for the management of the pandemic²
The development of effective vaccines is encouraging;
successful vaccination programmes both in Cyprus and
abroad expected to be strong catalysts for economic
recovery; over 60% of the population over 18 years old
expected to be vaccinated by the end of Jun 2021
The reduction in international tourist arrivals in 2020, was
partly offset by domestic tourism, a trend expected to
continue in 2021; A recovery in tourist activity is expected
from 2H2021 and will be linked with international vaccine
programmes
UK, and Israel that account for >40% of tourism arrivals are
well progressed with vaccination plans
Source: Cyprus Statistical Service and Eurostat
GDP projections under the updated base scenario of Ministry of Finance, Central Bank of Cyprus, European Commission, the
Economics Research centre of the University of Cyprus
1)
2)
Lowy Institute https://interactives.lowyinstitute.org/features/covid-performance/
Economy contracted by 4.5% in 4Q2020; significant rebound expected in 2021
3.2%
1.4%
-4.7%
--4.5%
1.0%
-12.6%
-3.3%
-4.2%
-4.9% -5.1%
-6.8%
3.2% to 4.5%
3.8% to 4.2%
-14.6%
4Q2019
1Q2020
Cyprus
2Q2020
Euro Area
3Q2020
4Q2020
2020
2021E1
Tourist arrivals in 2020 impacted by COVID-19
1.6
2.3
-83%
0.4
0.3
Jan-Jun
Jul-Dec
2019
-84%
2020
Bank of Cyprus Holdings
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