In 2022, Cyprus’s trade sector saw a remarkable 20.7% increase in turnover, reaching €17.61 billion, with wholesale trade surging by 28.7% and retail trade by 12.5%. Employment in the sector also grew by 3.2%, reflecting the sector’s expansion and positive economic impact.
The recent ECB interest rate cut is poised to bolster the Cypriot economy by lowering borrowing costs and potentially spurring business loans and investments. While the impact remains uncertain due to global geopolitical uncertainties, the move is expected to provide companies in Cyprus with access to more affordable credit, paving the way for economic growth.
Eurobank S.A. acquired a 55.3% majority stake in Hellenic Bank, showing consolidation in Europe’s banking sector and reflecting confidence in the Cypriot economy. Concurrently, Keve transformed its Nicosia headquarters into a green building, emphasizing sustainability and setting the standard for environmental responsibility in Cyprus.
The impact of bank lending practices on economic growth is profound, with adjustments in interest rates directly influencing borrowing affordability, business sentiment, and development. Despite the recent rate cut by the European Central Bank, local banks’ reluctance to lend to businesses, preference for depositing funds with the ECB, and lack of competition among banks pose challenges to economic dynamism and growth in Cyprus.
Cyprus is making strides in digital dividend payments, aiming to enhance shareholder convenience and streamline distribution processes. The recent legal resolution involving Laiki and Bank of Cyprus depositors, coupled with positive economic indicators like decreased unemployment rates and increased employment figures, reflects the nation’s commitment to growth and financial stability.
Cyprus is set to experience a 2.9 percent GDP growth in 2024, with expectations of a steady increase to 3.3 percent by 2027. Alongside this positive economic outlook, inflation is anticipated to stabilize at 2.5 percent in 2024, while unemployment rates are forecasted to drop from 5.8 percent to 5.1 percent by 2027, with government debt expected to decline significantly, enhancing the country’s financial stability.
Cyprus celebrates 20 years in the EU with significant economic growth and social development, enhanced trade and investment, and cultural exchanges. Despite challenges like the anniversary of the Turkish invasion, the EU remains committed to democracy, solidarity, and addressing pressing global issues like COVID19 and migration.
Cyprus celebrates two decades of EU membership with strengthened cooperation and economic growth from integration into the single market. President Nikos Christodoulides and European Commission President Ursula von der Leyen mark the occasion with a ceremonial tree planting, symbolizing the deeprooted connections and diplomatic achievements Cyprus has fostered within the Union since 2004.
Cyprus is currently experiencing a tourism boom, leading to a surge in labor demands within the sector, with areas like Protaras witnessing significant growth in visitor numbers. Moreover, the nation’s economic forecast paints a positive picture, with strong GDP growth expected, and the banking sector showing positive signs of growth with increased loans and deposits. The government is focusing on balancing local employment with foreign labor to support this economic surge.
In March 2024, Cyprus residents’ bank deposits saw a significant surge of €318.5 million, indicating growing confidence in the local banking sector and a trend of financial stability. This rise, contributed by households, corporations, and various domestic sectors, reflects a broader economic upswing and trust in Cyprus’s financial institutions.
