Cyprus Economy, Cyprus Citizenship by Investment

Just 3 Years After the Crash, Cyprus Economy is Thriving

Economic Update

Cyprus Government issues €1billion 10-year bond

On 27 October 2015 the Cyprus government issued a €1 billion EUR, 10-year bond at an average yield of 4,25%.

This is the lowest rate at which the Republic of Cyprus ever issued a 10-year bond and €450 million (of the money borrowed) will be exchanged with bonds maturing in 2019 and 2020, while the other €550 million will strengthen the government’s cash reserves in the near future after Cyprus exits its adjustment programme.

It is Cyprus’ third successful market test after the country was shut out of markets in May 2011. The government issued a €750 million five-year bond at an average yield of 4,85% in June 2014 and a €1 billion 7-year bond in April 2015 at an average yield of 4%.

According to a statement issued by the Finance Ministry, the goal of the issue was to “further extend the interest-rate curve, mitigate refinancing risk through the easing of the debt-maturity timeline, improve relations with the investing public, and broaden the base of investors”.

[source: Cyprus Mail]


GDP Growth Rate

Τhe GDP growth rate in real terms during the second quarter of 2015 is positive and estimated at +1,2% over the corresponding quarter of 2014. This is the second consecutive quarter during which the growth rate was positive. Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at +0,8%.

Positive growth rates were recorded by the sectors of manufacturing, trade, hotels and restaurants, transport, communication, the professional, scientific and technical activities and administrative and support service activities as well as the financial service activities. Νegative growth rates were recorded by the sectors of construction, electricity as well as the activities of households as employers.

[Source: CYSTAT]

World Bank’s Doing Business report - Cyprus in the top ten for improved business practices

Cyprus is among the world’s top 10 countries that improved their business rules in the past year, according to the World Bank’s Doing Business report.

The island was among the top 10 economies that implemented at least three reforms, moving up 13 places to 47 in the overall 2016 Ease of Doing Business ranks out of 189 countries.

This also boosted Cyprus’ Distance from Frontier overall percentage to 71,78% compared with 67,37% last year.

According to the report Cyprus implemented reforms such as enforcement of contracts, resolving insolvency, getting electricity, getting credit, and paying taxes. The island also made resolving insolvency easier by introducing a reorganisation procedure and provisions to facilitate the continuation of a debtor’s business during insolvency proceedings. Introduction of the insolvency regime won Cyprus 34 positions to 17.

[Source: Cyprus Mail]

Record increase in tourism arrivals

Tourist arrivals rose for the third consecutive month in September, marking the best ever result for this month based on available data.

In particular, the arrivals of tourists reached 360.899 in September 2015 compared to 316.602 in September 2014, recording an increase of 14%.

An increase of 32% was recorded in tourist arrivals from the United Kingdom (from 109.951 in September 2014 to 145.166 in September 2015), 99,9% increase from Israel (from 7.383 to 14.756), 34,7% increase from Germany (from 9.534 to 12.840) and 27,9% increase from Greece (from 9.382 to 12.001 this year) . On the other hand a decrease of 17,0% was recorded in tourist arrivals from Russia (75.391 in September 2015 compared to 90.866 in September 2014) and 5,9% decrease from Sweden (15.951 compared to 16.947 last year).

For the period January – September 2015 arrivals of tourists totaled 2.203.599 compared to 2.051.483 in the corresponding period of 2014, recording an increase of 7,4%.

It is also noteworthy that according to the Cyprus Tourism Organisation both in July and August 2015 tourist arrivals reached a record high.

[Source: CYSTAT]

Total property sales

According to the data published by the Cyprus Department of Lands and Surveys, property sales in Cyprus increased during the period January – September 2015 by 6%, compared to the corresponding period in 2014. It is also noted that during all months of 2015 up to September, with the exception of May and August, an increase was recorded in the number of the deed of sales.

In particular, deeds of sale increased during the nine months of 2015 from 3.328 to 3.530 compared to the same period in 2014. The increase was evident in Larnaca (36%) and Limassol (4%), whereas in the remaining cities a marginal decrease was recorded. 

During the same period, 27,3% of total buyers (representing 965 deeds of sale) were non-Cypriots.

[Source: Cyprus Department of Lands and Surveys]

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