investmentGATEWAY

Precise and personalised approach
INVESTMENT FAQs  | AVOID SCAMS
In some cases, fraudulent emails might claim to represent Investment Gateway and offer certain benefits. Investment-Gateway.eu does not send any such emails to request information. This website's service is purely informative, and to help direct interested parties to professional corporate services via third party consultants in Cyprus and the European Union.

Be aware. Ignore such emails and do not reply.


Thank you

Investment-Gateway.eu

Good Growth projected for Cypriot Economy

Continued Growth Expected for Cypriot Economy, with GDP growth above 3% until 2021.

Published on: 27 December 2018

According to the Central Bank of Cyprus (CBC), the Cypriot economy will continue to remain strong, with good GDP growth above 3% until 2021. This will be mainly sustained by strong domestic demand, economic activity and foreign investments.

Economic growth in Cyprus will reach 3.8% in 2018 and will decelerate to 3.7% in 2019, while economic expansion is projected to slow further to 3.2% and 3.3% in 2020 and 2021 respectively.

Main drivers for this growth will be domestic demand, economic activity and investments. According to the CBS, large private investments amounting to €3 billion with a sizeable funding percentage coming from foreign capital have already begun and are projected to conclude by 2021. These investments include projects in renewable energy infrastructure, property and residential housing construction, as well as commercial and mixed developments, such as enhancement of the port, marinas, hotels and the new integrated casino resort, to be the largest in Europe.

Such projects will no doubt provide a huge stimulus to the Cypriot economy over the coming years, bringing in capital, enhancing the country’s positioning, and importantly creating jobs and business activity for locals.

However, the CBC also pointed out the continued deleveraging efforts by the domestic private sector and the banks' efforts to rationalise their balance sheets and reduce the high burden of non-performing loans will weigh down economic growth.

The CBC said the recent sales of NPL portfolios such as the sale of €2.7 billion of NPLs by the Bank of Cyprus to Apollo Capital have improved their asset quality, boosting investor and depositor confidence.

“Despite the noted progress which will reduce NPL rate under 30% we are still far from the European average levels of 3.6%,” the CBC stressed.

Moreover, the CBC expressed reservations over a government scheme called ESTIA scheme aiming to subsidise part of the repayment plan for mortgageĀ defaulters. Approved by the EU, the plan is expected to be launched in 2019 and will cost the government around €33 million annually over the next 25 years.

“Our concerns are premised mainly on the possible moral hazard, which could be manifested through deliberate defaults by borrowers which hope for future state assistance or believe the scheme is unfair as it subsidises strategic defaulters,” the CBC said.

“Therefore, any scheme should assist the efforts by all stakeholders for the creation of a repayment culture and not to increase risks for the contrary.”

Cyprus will continue to post a strong fiscal position with high fiscal surpluses but cautioned against demands which increase state expenditure.

“The trend for demands which increase state spending should not lead to a slippage. Any increase in state expenditure should be controlled and targeted to avoid a fiscal derailment.”

 

Return to Press Page

 

About Investment-Gateway.eu

One contact, multiple options

Established in 2011, Investment Gateway is an independent and impartial hub and initial point-of-contact to leading supplier-firms in Cyprus that provide professional services for investment purposes, including company formations, subsequent company administration and maintenance services, accounting and auditing, global tax planning, wealth management, as well as international banking. Investment Gateway introduces you to the right partner from a pool of pre-qualified supplier-firms, made-up of leading accounting, legal and consulting agencies in Cyprus.

The Investment-Gateway.eu platform is a completely free service, together with offering added-value content in general information, news updates, documents and analytics on the local Cypriot, European and global economy to help with investment strategies to the EU, Europe, Russia & CIS, Middle East & Africa, as well as around the world.

Investment Gateway Contact information:
Investment Gateway Media Investment Gateway Agents
www.investment-gateway.eu www.investment-gateway.eu
communications 'at' investment-gateway.eu info 'at' investment-gateway.eu

Investment-Gateway is an eco-friendly professional services platform, taking action on global climate change by offsetting carbon emissions on behalf of all clients. Learn More

Cyprus Economy & Tax News  

Good Growth projected for Cypriot Economy
27 December 2018
Appeal for Shipping Sector Grows as Brexit Looms
20 December 2018
Amendment to UK-Cyprus Double Tax Convention
19 December 2018
Cyprus Business Register: 2017
05 December 2018
Cyprus-Serbia Summit
30 November 2018
Investment by Companies in Cyprus to Strengthen
01 June 2018
Geo-Blocking Regulation (EU) 2018/302
15 May 2018
Importance of Legal Due Diligence Report
30 April 2018
Cyprus-UK DTT
16 April 2018
Update on Latest Tax Circulars Issued in 2018
06 March 2018
Cyprus-Barbados DTT
19 February 2018
Minority Shareholders’ Rights in Cyprus
12 February 2018
EU Council Updates Tax Haven Blacklist
02 February 2018
Cyprus-KSA DTT
31 January 2018
Disclosure of Non Financial Information
19 January 2018
Prev |     Page 1 of 17

 

Economy, Finance & Tax News


Interviews & Speeches

 

European & Global Affairs

 

Review & Perspective on Cyprus
CEX.IO Bitcoin Exchange