Cyprus is making strides in its economic growth, with recent developments like strengthening ties with Greece and abolishing a corporate tax levy. The Central Bank of Cyprus projects a steady GDP growth, while the Cyprus Stock Exchange shows gains, reflecting a promising economic landscape.
What are the recent significant economic developments in Cyprus?
- Cyprus and Greece strengthened ties with a new Memorandum of Cooperation.
- The Cyprus House of Representatives abolished the annual €350 corporate tax levy to boost business.
- Tourism excellence was celebrated at the Cyprus Hospitality Awards, aiming to internationalize Cypriot gastronomy.
- The Central Bank of Cyprus projected a positive GDP growth for 2023 and upcoming years.
- The Cyprus Stock Exchange showed gains, indicating a dynamic economic landscape.
Strengthening Ties: Cyprus and Greece Sign Memorandum
The Central Bank of Cyprus (CBC) and the Bank of Greece (BoG) recently fortified their commitment to collaboration. In a notable event in Nicosia, the two entities inked a Memorandum of Cooperation. The CBC’s Constantinos Herodotou and the BoG’s Yiannis Stournaras were present, marking an auspicious moment for both institutions. Yiannis Stournaras spoke on the significance of the agreement: “the signing of the cooperation memorandum today enriches and deepens further the scope of collaboration between the two central banks.”
Legislative Developments: Tax Levies and Hospitality Recognition
Substantial legislative changes are underway in Cyprus. The House of Representatives, after a marathon nine-hour session, approved several key legislations. A notable change is the abolition of the annual €350 corporate tax levy, a move anticipated to stimulate the business environment. This fee, in place since 2011, will no longer burden companies registered in the Department of Registrar of Companies and Intellectual Property.
Meanwhile, the tourism sector celebrated excellence at the Cyprus Hospitality Awards. Deputy Minister of Tourism Kostas Koumis attended the event in Limassol and emphasized the ongoing efforts to internationalize Cypriot gastronomy. “The Cyprus Hospitality Awards are a unique opportunity to reward creativity, professional dedication, pioneering, and the love of people for providing excellent hospitality,” Koumis said.
Economic Outlook: A Steady Climb
The CBC has provided an optimistic forecast for Cyprus’s economy, projecting a 2.2 percent GDP growth for 2023. This follows an impressive 5.1 percent expansion in 2022. Looking further ahead, expectations are set for GDP growth rates of 2.6 percent, 3.1 percent, and 3.2 percent for the years 2024-2026. CBC’s governor highlighted the critical role of sustainable development and reforms as the bedrock for continued prosperity.
In related financial news, Cyprus’s banking system has maintained its resilience. At the same time, the Cyprus Stock Exchange budget for 2024 was voted on, with projections indicating a deficit that reflects the challenging yet hopeful economic landscape.
Telecommunications and Stock Exchange Updates
Cyta, the leading telecommunications company in Cyprus, presented its 2024 budget, underscoring a commitment to innovation and societal impact. Maria Tsiakka, President of Cyta, confidently detailed the organization’s strategic vision, aiming to position Cyprus as a trailblazer in the global telecommunications arena.
On the trading front, the Cyprus Stock Exchange (CSE) concluded a day of trading with gains. Notable movements included an overall index increase and specific investment interest in companies like Vassiliko Cement Works Public Company and Hellenic Bank. This positive market activity showcases the dynamism and potential of the Cypriot economy.
What are the recent significant economic developments in Cyprus?
- Cyprus and Greece strengthened ties with a new Memorandum of Cooperation.
- The Cyprus House of Representatives abolished the annual €350 corporate tax levy to boost business.
- Tourism excellence was celebrated at the Cyprus Hospitality Awards, aiming to internationalize Cypriot gastronomy.
- The Central Bank of Cyprus projected a positive GDP growth for 2023 and upcoming years.
- The Cyprus Stock Exchange showed gains, indicating a dynamic economic landscape.
How has Cyprus strengthened ties with Greece recently?
The Central Bank of Cyprus (CBC) and the Bank of Greece (BoG) signed a Memorandum of Cooperation to enhance collaboration. This agreement was seen as a significant step in enriching the scope of cooperation between the two central banks.
What legislative changes have occurred in Cyprus recently?
The House of Representatives in Cyprus approved the abolition of the annual €350 corporate tax levy, which is expected to stimulate the business environment by removing this financial burden on companies. Additionally, the tourism sector in Cyprus celebrated excellence at the Cyprus Hospitality Awards, emphasizing efforts to internationalize Cypriot gastronomy.
What is the economic outlook for Cyprus in the upcoming years?
The Central Bank of Cyprus has projected a positive GDP growth of 2.2 percent for 2023, following a 5.1 percent expansion in 2022. Expectations for GDP growth rates of 2.6 percent, 3.1 percent, and 3.2 percent have been set for the years 2024-2026. Sustainable development and reforms are highlighted as crucial for continued prosperity in Cyprus.
