Cyprus Economy Growth and Development

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Overcoming challenges since the financial crisis of 2013, Cyprus has reclaimed its status as a thriving economy, with strong fiscal performance and new large-scale projects in the pipeline, the small EU country has exceeded international expectations.

Not only has Cyprus exceeded international expectations but it has also attracted international attention and investment with the Cyprus Investment Program. As the economy improves many are taking the opportunity to invest in Cyprus Property, gaining citizenship to a country that has a bright promising future. Investment in private property is increasing alongside investments on a large scale with projects such as the Ayia Napa Marina and Limassol casino under construction made possible through investment in Limassol. Many future projects are currently being planned backed by favourable investment grades and GDP Growth.

Positive Investment Grade

Cyprus long and short-term foreign and local currency sovereign credit ratings has been raised by Standard & Poor’s Global Ratings, from BB+/B to BBB-/A-3. Commenting on the upgrade President Anastasiades tweeted “The return after 6.5 years to investment grade is the strongest confirmation of the prudent management that we followed and continue to follow, our economy is recovering with the best omens being confirmed.”

In its announcement Standard & Poor’s Global Ratings explained the logic behind the upgrade, explaining the Cypriot economy will continue to grow at a solid pace through 2021, our forecast horizon, enabling the government to alleviate its debt burden.

Cyprus Economy Expands

Cyprus’ gross domestic product growth expanded by 0.8% in the second quarter of this year compared to the first quarter, double the 0.4% growth rate in both the eurozone and the European Union, Eurostat announced on Friday, Xinhua reported. CyStat reported a most encouraging development in the drop of unemployment for those between 15 and 24 years of age from 25.3% in Q2 last year to 17.9% in Q2 this year.

GDP Growth from all Industries

GDP growth rate during the second quarter of 2018 is positive and estimated at +3.9% over the corresponding quarter of 2017. Based on seasonal and working day data, GDP growth rate in real terms is estimated at +3.9%, according to data released by the Statistical Service of Cyprus.

The increase of the GDP growth rate is mainly attributed to the sectors: “Hotels and Restaurants”, “Retail and Wholesale Trade”, “Construction”, “Manufacturing”, “Professional, scientific and technical activities” and “Administrative and support service activities.”

Economic Performance

Cyprus has an open, free-market, service-based economy. Its strong business environment, highly educated workforce and favourable stable tax regime have remained in place and allowed the country to pass quickly through the crisis. Looking ahead, with ongoing efforts to reform public spending, develop the investment fund sector and a push forward with natural gas exploitation, Cyprus is ensuring that its prosperity endures.

The Effect on the Real Estate Sector

With the success of the Cyprus Investment Program alongside holidaymakers who fall in love with the island and make it their home, the real estate sector in Cyprus is growing at a rapid pace. SkyPrime Group has met the demands of the expanding real estate sector by developing luxury Cyprus villas for sale, also seafront properties for sale in Cyprus.

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Date published: October 4, 2018