Fitch has raised the sovereign credit rating for Cyprus by a notch, with the country’s president saying this is a “vote of confidence” and a reward for maintaining a resilient economy. The rating agency said it upgraded Cyprus from ‘BBB’ to ‘BBB+’, which indicate that expectations of default risk are currently low. According to Fitch, … Read more
Illegal and undeclared work in Cyprus is a growing trend, particularly in the construction industry, where it is approaching 25%. The Cyprus economy relies on employing people other than Cypriots, but this needs to be done with appropriate regulations. Third country personnel are attracted through illegal procedures in the promise of a job. The construction sector contributes about 15% to the island’s GDP, with optimistic forecasts for 2024. There are currently 40 projects underway in the construction sector worth €862 million.
President Nikos Christodoulides emphasized the important contribution of shipping to the economic development of Cyprus and stated that his administration will continue to work towards the sustainable development of Cypriot shipping.
Bank of Cyprus Holdings announced €133 million in first quarter profits, up 40% year-on-year but €5 million short of the previous quarter’s after-tax profits.
The Cypriot economy exhibited its highest growth rate in the last five quarters during the first quarter of 2024, with Gross Domestic Product (GDP) increasing by 3.5 per cent compared to the same quarter of 2023.
The Cyprus economy’s growth rate in real terms during the first quarter of 2024 is positive, with a gross domestic product estimated at 3.5% year-on-year according to Cystat.
Fact: The Cyprus Investment Promotion Agency (Invest Cyprus) and the Cyprus Fiduciary Association (CYFA) signed a memorandum of understanding (MoU) to enhance collaboration and promote Cyprus as an international center for fiduciary and administrative services.
By end-February 2024, the government had accumulated cash deposits of over €3.5 billion at the Central Bank and €2.1 billion at commercial banks.
Cypriots are pessimistic about the future, the economy, and geopolitical crises, but maintain trust in European institutions and the single currency. The two traditional political parties, DISY and AKEL, are expected to dominate the upcoming elections for members of the European Parliament, mayors, and councillors. DISY is in the lead for the election of the six MEPs with 20%, followed by AKEL with 19%.
Fact: Finance Minister Makis Keravnos stated that there is no immediate threat to the Cypriot economy from developments in the Middle East, following a snap meeting with ministry officials.