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7 February 2018

The success story of the Cyprus economic recovery

The Martens Center of the European People’s Party (EPP) analysed in a recent report the circumstances that have led to the economic recovery in Cyprus after the 2013 economic crisis. Commending the “ambitious and consistent implementation of necessary reforms”, the report also highlighted the fact that the country should continue with further vigilance.

Specifically it mentioned that “the Cypriot economy should not rest on its laurels even if it has registered a significant improvement”.

The report made a note to a forecast by Oxford Economics which warned that further reform is still necessary as the ‘legacy of the 2012-2013 crisis can still be seen in the banking sector’.

Moreover, it the Martens Center’s reports highlighted that:

“Further work on restructuring non-performing loans and improving public finances is required in order for the positive forecasts to become a reality.”

The report stated that “the performance of Cyprus is a clear example of the positive link between a bailout program for a country in deep crisis and sustainable economic activity,”

In addition, the report made reference to statistical data which supports the positive economic indicators; specifically:

“Statistical data from Eurostat supports the positive contribution government policy since 2013 has made to the country’s recovery. Cyprus ranks among the top ten countries in the European Union on key financial indicators. Data for the third quarter of 2017 shows a 0.9% increase in GDP over the previous quarter and a 3.9% increase over 2016. Employment has increased by 0.7% in the third quarter when compared to the second and by 3.5% when compared to 2016. Equally, Cyprus registered the fifth largest year-on-year decrease in unemployment in the European Union, from 13.1% in 2016 to 11.0% in the third quarter of 2017”.

Lastly, the report mentioned that economic growth is expected to remain strong in 2018 and 2019.

 

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