According to the monthly Economic Sentiment Indicator (ESI-CypERC), economic sentiment has picked up in April fuelled by the overall economic improvements as well as growing consumer confidence in the services, construction and retail trade industries.
In the first quarter of 2017, Cyprus has exhibited robust signs of the recovery of the economy across various sectors, including the following:
Increase in the registration of new companies
In March 2017 there has been a significant increase in the registration of new companies following the decrease experienced in February 2017. Prior to that, the registration of new companies increased for 17 consecutive months. Specifically, the number of new companies registered increased by an astounding 36.8% in March 2017 compared to the previous month.
According to statistics by the Department of Registrar of Companies and Official Receiver, this represented an increase of 8.8% compared to March 2016.
Credit ratings agency Fitch maintains ‘BB’ rating for Cyprus
This illustrates the agency’s long-term positive prospects for growth and stability in Cyprus.
The country’s Gross Domestic Product (GDP) increased by 2.8% in 2016 and by 1.7% in 2015 due to the strong home-based demand whilst tourism increased to record levels.
The agency predicts an increase in GDP by 2.7% in 2017 and a further 2.5% in 2018 which will be fuelled by the recovery in the labour market and by significant investments.
Increase in tourist arrivals in March reaches new record
According to data from the statistical service CyStat, there was an increase of 13.5% in tourism compared to 2016. At the same time, 19.2% more Cypriot residents travelled abroad compared to the same month last year.
Compared to March 2016, tourist arrivals in Cyprus in March 2017 increased by 2.8%, showing signs that the tourism level in Cyprus for 2017 could reach a new high.
Tourist arrivals in Cyprus from Russia also experienced an increase by 55.1% in March 2017 compared to March 2016 while tourist arrivals from Greece increased by 10.7%.
Overall, more tourists from other tourist markets such as Israel and France chose Cyprus as a destination this March.
The UK and Russia were the main sources of tourism in Cyprus in March 2017.
Significantly, the revenue generated from tourism experienced a significant increase reaching EUR 35.4 million in January 2017, compared to EUR 29.1 million in January 2016 (which is an increase of 21.6%).