• About Us
  • Our Services
  • Subscribe
  • Advertise
  • FAQ
  • Contact Us
Login | My Posts
Accountants in Cyprus
  • Publications
  • About Cyprus
    • Cyprus History
    • Cyprus Company Registration
    • Cyprus Tax
    • Cyprus VAT
    • Cyprus Accountants
    • Cyprus Economy
  • Find Accountants
  • Contact Us
No Result
View All Result
  • Publications
  • About Cyprus
    • Cyprus History
    • Cyprus Company Registration
    • Cyprus Tax
    • Cyprus VAT
    • Cyprus Accountants
    • Cyprus Economy
  • Find Accountants
  • Contact Us
No Result
View All Result
Accountants in Cyprus
No Result
View All Result
Home Publications News & Announcements

Cyprus Returns to Positive Economic Outlook

March 29, 2015
in News & Announcements
Reading Time: 2 mins read

International credit rating agency Standard and Poor’s (S&P) has released its most recent evaluation of the Cypriot economy through which it reveals its upward outlook revision from stable to positive.

Maintaining the island’s “B+/B” rating, the agency cites superior economic performance in relation to previous predictions as the basis of its favorable revision.

The S&P report explains: “The outlook revision reflects our view of the faster-than-expected reduction in Cypriot general government debt, supported by less adverse economic growth prospects than previously.”

It further estimates that the economy will effectively bottom out in 2015, following which it will gradually strengthen, based on a resilient business services sector, solid tourism sector, and gradually recovering private consumption.

The agency cautions, however, that investment growth will remain negative, as the process of deleveraging by domestic banks continues.

It continues: “As a result of the government’s past and expected budget deficit reductions, against the background of gradual recovery in economic growth over our 2015-2017 projection period, we expect the general government balance will average about negative 0.7% of GDP over 2015-2017, compared with our previous projection of negative 2.4% of GDP.”

Acknowledging that its projections are subject to uncertainty, due to various potential shocks to Cyprus’ small, open, services-based economy, Standard and Poor’s notes that the economy will return to growth in 2015, for the first time since 2011.

S&P cites the depreciation of the Russian ruble and the expected contraction of the Russian economy, alongside the EU sanctions imposed on several large Russian commercial banks and companies, as the main factors which may weigh on the prospects in key Cypriot sectors, including tourism and business services.

“Still, despite an estimated 4% decline in nominal GDP growth last year, Cyprus’ budget deficit narrowed by nearly two percentage points of GDP to about 3% of GDP, to below the outcomes we expected for many eurozone (European Economic and Monetary Union) economies that saw positive growth,” the agency adds.

Finally, S&Ps notes that financial stability continues to remain a key risk as the banks’ asset quality deterioration continues and Non Performing Loans amounted to almost 55% of total assets in November 2014.

“Although the new legislation regarding foreclosures and insolvency procedures adopted this year could improve conditions, we think the outcome is still uncertain. We continue to consider that the economic adjustment program’s €1 billion financial sector support buffer provides the government with leeway to address financial sector stability risk,” it concludes.

SOURCE: GOLD NEWS

ShareTweetShare

Newsletter

Latest News

Bank of Cyprus Achieves Record Lending and Profitable Quarter
News & Announcements

Bank of Cyprus Achieves Record Lending and Profitable Quarter

May 12, 2025

Bank of Cyprus Reports Strong First Quarter 2025 Results and Strategic Progress “The Bank of Cyprus delivered another strong quarterly...

Read more
Cyprus tax booklet 2025

Cyprus Tax Booklet 2025

May 9, 2025
real estate in Cyprus and Greece 2025

Cyprus and Greece Real Estate in 2025

May 6, 2025

Accountants in Cyprus is an accounting portal that consists of information in the field of finance and a network of Cyprus accounting firms and other financial service providers .

USEFUL LINKS

  • Accountants in Nicosia
  • Accountants in Limassol
  • Accountants in Larnaca
  • Accountants in Famagusta
  • Accountants in Paphos
  • Accountants in Nicosia
  • Accountants in Limassol
  • Accountants in Larnaca
  • Accountants in Famagusta
  • Accountants in Paphos

USEFUL LINKS

  • Cyprus Tax Consultants
  • Tax Planning Cyprus
  • Tax Benefits Cyprus
  • Double Taxation Treaties
  • Cyprus Accounting Firms
  • Cyprus Tax Consultants
  • Tax Planning Cyprus
  • Tax Benefits Cyprus
  • Double Taxation Treaties
  • Cyprus Accounting Firms

AFFILIATED SITES

logo-lawyers-in-cyprus
lawyers-malta

2023 © Accountants in Cyprus. All Rights Reserved. Developed by Wizzweb

  • About
  • Cyprus Accounting Services
  • Auditors in Cyprus
  • Cyprus VAT
  • Contact Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Publications
  • About Cyprus
    • Cyprus History
    • Cyprus Company Registration
    • Cyprus Tax
    • Accountants Cyprus
    • Cyprus Economy
  • Find Accountants
  • Contact Us
  • Our Services
  • Subscribe
  • Advertise
  • FAQ

© 2023 Accountant in Cyprus

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.