investmentGATEWAY

Cyprus GDP has risen by 1.60% in the first quarter of 2015 and positive growth rate estimated at 0.4% over the corresponding quarter of 2014, as reported by the Statistical Service of the Republic of Cyprus.

The reported rise in GDP places Cyprus the second country in Europe (together with Romania) with the highest growth rates in the first quarter after the Czech Republic. The island’s economic restructure plans remain in tact and the remarkable resilience shown by the Cyprus economy has resulted to a positive upturn in growth sooner than anticipated, in 2015. Although these are short-term indicators, Cyprus is forecasted to see more balanced economic growth in 2016. With all bank sanctions lifted, interest rates finally on a slow decline, and although the country continues to struggle with non-performing loans (NPLs) and public debt, Cyprus is returning to International markets.

With the government’s ongoing efforts to generate inward foreign investments with various incentive schemes, Cyprus is showing signs of stabilisation and consumer economic confidence seems to be returning, with the Cypriot economy forecasted for recovery.

The banking sector is also showing signs of stabilisation, with bank deposits increasing for the first time since December 2012, banks are now lending and foreign investors are showing renewed interest. Growth in tourism and business services sectors also rank particularly well, as the island has continued to attract and retain business.

A number of government incentives has helped spur better performances. One of such incentive schemes is the Cyprus Citizenship by Investment Programme; now enabling non-EU applicants to obtain Cypriot citizenship on an expedited basis.

Cyprus has also received much attention by foreign investors in other appealing areas, such as the enhanced Cyprus Alternative Investments Funds, and the Cyprus VAT Yacht Leasing Scheme and more recently the new Cyprus VAT Aircraft Leasing Scheme.

Source: C.Savva & Associates