Insider Economy Real GDP growth in Cyprus is projected at -5.7% in covid-hit 2020

Real GDP growth in Cyprus is projected at -5.7% in covid-hit 2020

Real GDP growth in Cyprus is projected at -5.7% in 2020 as a result of the coronavirus pandemic, according to the Economic Outlook issued on Monday by the Economics Research Centre of the University of Cyprus.

The contraction of GDP in 2020 is estimated to be smaller than the forecast in the previous issue due to the stronger-than anticipated rebound in economic activity in Cyprus and abroad following the lockdowns in the spring.

In 2021, the Cypriot economy is expected to recover as real GDP growth is projected at 3.7%.

The growth forecast for 2021 is revised downwards relative to the forecast in the previous issue, due to the resurgence of the pandemic in the last months of 2020 and the renewed containment measures.

The balance of risks to the outlook is tilted to the downside. Downside risks arise from the introduction of stricter measures to curb the spread of the pandemic, especially the new lockdown in January.

Additional risks stem from delays in the vaccine rollout and vaccinations in Cyprus and the EU, as well as from a new wave of infections due to new variants of the virus.

Slower-than-anticipated progress with vaccinations and/or a new surge in infections will cause setbacks to the reopening of economic sectors and slow down the recovery of domestic activity and external demand, particularly demand for tourist services.

Other risks relate to pressures on public finances and a possible re-escalation in NPLs as the pandemic persists.

Top Stories

Total of 298 new covid cases on Saturday, out of 45,369 tests

Health authorities in Cyprus on Saturday announced 298 new coronavirus cases out of a total of 45,369 tests carried out all across the island. The...

Where you can get a rapid test on Sunday

The Health Ministry has announced the rapid testing sites for Sunday, available for the wider population, workers and the self-employed but also for pupils...

Nicosia welcomes S&P’s affirmation of Cyprus’ “BBB-” credit rating

Finance Minister Constantinos Petrides on Saturday welcomed the affirmation by Standard & Poor’s international credit agency of Cyprus’ credit rating to "BBB-". It also...

Air France flight made emergency landing in Bulgaria over disruptive passenger

An Air France flight en route from Paris to New Delhi made an emergency landing at Sofia Airport in Bulgaria on Friday at about 5 p.m....

Italian prosecutor seeks life sentences for US students accused of killing

An Italian prosecutor on Saturday demanded life sentences for two young Americans being tried on murder charges after a policeman was killed following a...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...