Cyprus Business Now

Cyprus’ Gross Domestic Product (GDP) is projected to rise by 2.9 per cent in 2024, according to the latest estimates released on Thursday by the Finance Ministry, which are valid up to April of this year.

Furthermore, for the years 2025 to 2027, GDP is expected to grow further, with rates of 3.1 per cent, 3.2 per cent, and 3.3 per cent, respectively.

Regarding inflation, the Finance Ministry indicated that it will fall to 2.5 per cent in 2024. Subsequently, for the following years up until 2027, it is anticipated to hover at around 2 per cent.

President Nikos Christodoulides stated that the construction sector, supported by the Cyprus Property Developers Association (LBDA), plays a vital role in attracting investments, promoting entrepreneurship, and positioning Cyprus as an investment destination.

Speaking at a dinner held on Wednesday evening, marking the 40th anniversary of the establishment of the LBDA, the president emphasised the government’s intention to support the construction sector.

During the event, President Christodoulides discussed the government’s actions to address the housing crisis, particularly the Build to Rent scheme, which combines urban planning incentives with tax relief to increase the number of rental housing units in the market, offering significant economic benefits to land development investors.

The Great Britain-Cyprus Business Association’s International Investment Conference 2024 kicked off in Limassol today, with the aim of enhancing business networking between the two countries.

During the event, which will conclude on Friday, the Deputy Minister of Shipping, Marina Hadjimanoli emphasised the administration’s renewed commitment to sustaining support for the shipping industry.

Hadjimanoli acknowledged the challenges currently facing the shipping industry but remained optimistic about the sector’s future.

“We are confident that the steps taken to enhance competitiveness and promote shipping will contribute to our vision of growing our maritime cluster both in size and range of activities and pave the way for a future defined by prosperity, opportunity and lasting success,” she said.

Cyprus witnessed a rise in consumer loan interest rates in March of this year, alongside a decrease in rates for housing loans, while household deposit rates saw an increase, according to a report released this week by the Central Bank of Cyprus (CBC).

According to the same data, in the same month, the total amount of new loans decreased by €79 million compared to the previous month.

What is more, the Central Bank reported that the interest rate for household time deposits up to one year increased to 2.24 per cent, compared to 1.98 per cent the previous month.

Deloitte this week has released the results of the third edition of the Middle East Technology Fast 50, which showcases the fastest-growing technology startups in the region.

This programme recognises technology companies based on their revenue growth over the last four years.

In this edition of the Technology Fast 50, Deloitte received close to 200 applications from across Cyprus and the Middle East, representing companies spanning various industries, including Software, Fintech, Media & Entertainment, among others.

The ranked technology companies this year achieved an average growth of 1906 per cent, generating around $3bn in total annual revenues during 2022.

The Cyprus Chamber of Commerce & Industry (Keve) on Thursday announced that it is set to take part in this year’s Reflect Festival, the island’s flagship technology, innovation and startup event.

In its announcement, the chamber said that “Reflect Festival is the largest technology and innovation event in Cyprus and one of the fastest growing in the Mediterranean area, aiming to bring together over 8,000 entrepreneurs, investors, and tech enthusiasts, creating the must-attend place for building networks across Southern Europe, Middle East & North Africa”.

New research conducted by electronic registration portal Vignette Croatia has shed light on the European countries with the lowest adoption rates of electric vehicles (EVs), placing Cyprus fourth on the list.

Analysing the latest 2022 data from Eurostat, the study revealed that Bosnia and Herzegovina tops the chart as the country with the least utilisation of electric vehicles, with a mere 0.01 per cent of all vehicles being electric. In concrete figures, out of 1,006,142 registered vehicles, only 138 are electric-powered.

Cyprus, however, finds itself in the fourth position on the list, with 0.138 per cent of all vehicles in the nation being electric. Out of the 601,131 registered vehicles, a mere 830 are electric-powered.

Central Bank of Cyprus (CBC) governor Christodoulos Patsalides this week met with President Nikos Christodoulides, in what was their first meeting since assuming the role, where he briefed him on an impending reorganisation aimed at bolstering the CBC’s governance.

Following the meeting at the Presidential Palace, Patsalides stated that he informed the president of matters concerning the CBC, including ongoing issues under consideration and the planned reorganisation.

Cyprus’ real estate market experienced a notable resurgence in April, rebounding from the previous dip in sales observed in March, according to the latest information provided by the Department of Lands and Surveys.

This positive trend was particularly evident in Nicosia and Larnaca, while Limassol also demonstrated an upward movement, maintaining its lead by a significant margin. Overall, sales reached 5,000 across the island.

According to the department, property sales in April 2024 amounted to 1,366, compared to 1,192 in April 2023, marking a 15 per cent increase.

The Cyprus Stock Exchange (CSE) ended Thursday, May 9 with profits.

The general Cyprus Stock Market Index was at 148.80 points at 12:20 during the day, reflecting an increase of 0.26 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 90.40 points, representing a rise of 0.24 per cent.

The total value of transactions came up to €166,478 until the aforementioned time during trading.

In terms of the sub-indexes, the main index rose by 0.34 per cent while the hotel index remained unchanged. The alternative and investment firm indexes fell by 0.06 per cent and 0.63 per cent respectively.

The biggest investment interest was attracted by the Bank of Cyprus (+0.51 per cent), Hellenic Bank (+0.43 per cent), Demetra (-0.64 per cent), Blue Island (+1.85 per cent) and Salamis Tours (no change).