Positive Outlook for Cyprus Economy in Q1 of 2024
The first quarter of 2024 has brought encouraging news for the Cyprus economy, with a reported GDP growth rate of 3.5% year-on-year, as per the flash estimate by the Statistics Department Cystat. This marks a significant improvement from the previous quarter’s growth rates of 2.1% and 2.3% (seasonally adjusted), showcasing a resilient economic upswing.
Delving into the details, the seasonally and working day adjusted data indicates a GDP growth rate in real terms of 3.3%. The sectors that have been pivotal in driving this economic growth include “hotels and restaurants,” “wholesale and retail trade, repair of motor vehicles,” “information and communication,” “construction,” “arts, entertainment and recreation,” and “other service activities.” These industries have collectively contributed to the positive trajectory of the Cyprus economy.
The GDP Flash estimate aims to provide an early snapshot of the overall economic performance of Cyprus. This preliminary data is released just 45 days after the quarter’s end, utilizing a more concise set of input information than what is used for the regular Quarterly National Accounts (QNA) estimation, which follows at two months after the quarter’s end.
In a related development, Eurostat has published a second estimate of preliminary Q1 GDP data, which aligns with the consensus and the preliminary reading, showing quarterly and annualized GDP growth at 0.3% and 0.4%, respectively. This consistency between national and European statistical estimates further solidifies confidence in the robustness of the Cyprus economy’s growth rate.
As Cyprus continues to navigate through the economic landscape of 2024, these figures provide a promising indication that the country is on a path to sustained economic growth. The diverse sectors contributing to this expansion reflect a healthy and dynamic business environment that is likely to attract further investment and development in the near future.
