Insider Business Cypriot economy to expand by 3.8% University of Cyprus’ ERC says

Cypriot economy to expand by 3.8% University of Cyprus’ ERC says

The Cypriot economy will increased momentum in 2018, the University of Cyprus’s Economic Research Centre has said, upgrading its growth forecast to 3.8% compared with its previous projection of 3.6%. “Τhe Cypriot economy is expected to continue to grow at a solid pace in 2018 and 2019,” the ERC said in its May 2018 Economic Outlook bulletin, noting that in 2019 growth is projected to moderate slightly, as real GDP is forecasted to expand by 3.5%.

The ERC identifies four main drivers to Cyprus’ strong outlook in 2018 and 2019. These are the further improvements in real economic activity and labour market conditions during the final quarter of 2017 and the first quarter of 2018, the historically high levels of domestic economic sentiment, the steady growth in Cyprus’s trading partner countries, and strong economic sentiment in the EU and the favourable external financial conditions and supportive domestic lending conditions.

Upside risks to the outlook are associated with public investment and large – scale private construction projects, while stronger growth momentum in the EU may lead to faster growth rates than the current forecasts, the ERC added.

Downside risks to the outlook are associated with the high stock of non-performing exposures in combination with delays in streamlining the current insolvency and foreclosure frameworks, which “may create risks to financial stability and discourage future investors,” a fiscal slippage may render the economy vulnerable to shocks and lead to higher borrowing costs for Cyprus.

The ERC also says that delays in the implementation of structural reforms (e.g. public administration, judicial system, local authorities), given the high level of public debt, may weaken business and investor confidence, the sustainability of public finances and growth prospects, as well as slower than expected growth in the UK and a weaker pound due to Brexit negotiations as well as geopolitical risks could adversely affect the outlook.

Read more

https://in-cyprus.com/news/business/cyprus-records-deflation-0-1-in-april/

Source: CNA

Top Stories

Covid-19: A round-up of the latest developments in Cyprus

Another person has died and another 32 people tested positive for Covid-19 on Monday in the Republic of Cyprus, bringing the total number of...

Paphos doctor recounts own battle with Covid-19

A Paphos doctor discharged from hospital where he was treated for Covid-19 has recounted his ordeal to Phileleftheros. With his harrowing testimony came an appeal...

Measures for health professionals who are not in compliance

About 25-30% of health professionals are not at their posts in public hospitals among the Covid-19 pandemic either justifiably because they belong to vulnerable...

Covid-19 mother, newborn doing well

A mother who had tested positive for coronavirus and her newborn baby boy are doing well, Dr Agathoclis Christofides, heads of obstetrics and gynaecology...

Parliament to vote down bill on government-guaranteed bank loans

A government plan to guarantee up to €2bn in bank loans to businesses and self-employed people will be voted down by parliament, Phileleftheros reports. This...

Taste

Village olive pie

Mix the yeast with the lukewarm water and put it aside for about 12-15 minutes to settle.  Sift the flour with the salt into...

Skordalia (Garlic paste)

Rinse the potatoes and place, unpeeled, in a saucepan. Cover with water, add salt and allow to simmer for 20-30 minutes until soft. Drain,...

Village salad

A must-have with every meal is a village salad. You will find it in every tavern or greek restaurant you visit in Cyprus. Make...

Courgettes with eggs

Heat the oil in a frying pan and fry the courgettes at a medium heat until they soften. Add salt and add the eggs....