Economy of Cyprus

Cypriot banks are urging a combination of government and regulatory policies to achieve a healthy, effective and optimal green transition.

Banks stress their key role in this transition, emphasizing that while they should make significant financial contributions, the government must also align its policies with the banks to facilitate the green transition.

The shipping industry pumped a staggering 623 million euros into the real economy of Cyprus last year, solely through ship management.

Cyprus' economic growth is estimated at 2.5% in real terms in 2023. At current prices, the increase in gross domestic product (GDP) is estimated at 7.1%, according to the Statistical Service of Cyprus (CyStat).

Cyprus leads all European Union countries in the supply of cross-border investment services, Cyprus Securities and Exchange Commission (CySEC) Chairman George Theocharides said during a Parliamentary Finance Commission meeting in Nicosia.

The financial services sector has witnessed 12% growth over the past four years in Cyprus, particularly in investment companies, he said.

The Cyprus Fiscal Council has been taking a close look at how the Cypriot economy is doing, and is now offering some important information based on its study. It supports the ideas that the 2024 budget is built upon, saying they could really help the economy if put into action. But, there's a bit of worry about how much money the government will make and how much the economy will grow in 2024.

Cyprus' Finance Ministry fended off accusations fired by the opposition that government policy has taken its toll on the economy.

"The Cypriot economy continues its upward trend and, unlike other European countries which are entering a recession, Cyprus recorded the second highest GDP growth rate in the eurozone, after Spain, during the first half of the year," the ministry said.

Revenue from tourism in Cyprus amounted to €45.6 million euros in January 2023, significantly surpassing the revenue from tourism in January last year, as well as in January 2019, a record year for Cypriot tourism.

Nicosia has been illegally divided in two by Turkey, which occupies part of the city

The European Bank for Reconstruction and Development (EBRD) said on Thursday it will end its engagement in Cyprus at the end of this year after completing a six-year mandate in which it invested about 600 million euros. 

The end of the EBRD's mandate means the bank will stop investing in new projects on the island but will continue to manage an existing portfolio.

The collapse of British tour operator Thomas Cook is "credit negative" for Greek and Cypriot banks because it reduces the cash flow of businesses in the tourism sectors of these countries, ratings agency Moody's said in a report on Thursday.