Cyprus could lose 1.5% to 2% of its growth rate this year if Cyprus' airspace (under EU sanctions) to Russia remains closed for the whole of 2022, rating agency DBRS Morningstar estimates, noting that despite the negative impact, the war in Ukraine will not derail the medium-term prospects of the Cypriot economy.
In a commentary released today, the Canadian house notes that the imposition of sanctions against Russia following its invasion of Ukraine, as well as Moscow's counter-sanctions "have increased downside risks to Cyprus' otherwise strong medium-term economic outlook."
According to DBRS Morningstar, the risks stem from tourism revenues and higher energy prices.
(CNA)
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