In March 2024, Cyprus’ retail sector experienced a substantial surge with a 5.5% increase in the trade turnover value index and a 5.2% rise in retail volume, indicating a robust consumer market. This positive trend continued into the first quarter of the year, showing a 5.4% climb in the value index and a 4.9% increase in the volume index compared to the same period in 2023, highlighting a flourishing retail landscape.
The Cyprus government is proposing to change property valuations from every three years to every five years, potentially boosting efficiency in the real estate sector. The rebound in travel expenditures postpandemic reflects a broader economic recovery, while the country’s fiscal stability is evident through a surplus in the last quarter of 2023.
Cyprus faces an economic downturn, with the Cyprus Composite Leading Economic Index falling by 0.9% in March 2024 due to global conflicts, declining property sales, and volatile commodity prices. The island nation’s economic stability is being tested by external pressures and internal challenges, emphasizing the need for strategic planning and vigilance in the face of uncertainty.
The Turkish Cypriot economy shows resilience with low unemployment at 5.1%, high GDP growth of 13.3%, increased per capita income to $14,648, a 27% boost in exports, and a 31.1% surge in tourism with 1.9 million visitors in 2023. Despite challenges like high inflation, the economy of Turkish Cyprus is on an upward trajectory with growth, export expansion, tourism surge, and measures to address the cost of living, showcasing a strong response to economic challenges.
The Cyprus economy displays resilience amidst global uncertainty, with a slight increase in the Composite Leading Economic Index (CLEI) hinting at growth. However, a downturn in the Economic Climate Index (ECI) signals caution, emphasizing the need for vigilance as the economy navigates geopolitical tensions and potential regional downturns.
Cyprus saw a remarkable economic surge in 2023, with Kedipes bringing in a record €440.8 million in cash inflows and XM acquiring Forest Park Hotel for a €15 million renovation plan. Unemployment decreased by 13.8%, while the stock market displayed fluctuations amid a robust investment landscape.
Keve, the Cyprus Chamber of Commerce & Industry, is calling for immediate action to improve Cyprus’s international reputation. They emphasize the need for a robust awareness campaign, swift responses to incidents harming the nation’s image, and activation of the government’s diplomatic network to reaffirm Cyprus as a credible investment destination, while maintaining fiscal discipline and promoting economic stability.
