According to the preliminary estimate of the Statistical Office, the growth rate of the economy in the 4th quarter of 2021 is positive and estimated at 6% compared to the corresponding quarter of 2020.
The continued high growth rate in Q4 2021 confirms the resilience and dynamism shown by the Cypriot economy, reinforcing expectations for continued positive performance and further growth in 2022.
For 2021 as a whole, the growth rate is estimated at 5.7%, which is close to the initial forecast of the Ministry of Finance. This growth rate demonstrates that the Cypriot economy is one of the relatively few economies in the European Union that has recovered from the losses of the 2020 health crisis.
The improved economic environment and recovery in confidence is also supported by the improved performance of the labour market where the unemployment rate for Q4 2021 is estimated to be close to 6% and with the number of registered unemployed showing a steady downward trend, suggesting that in 2022 unemployment levels will be lower than pre-crisis levels.
The good performance of the economy and prudent fiscal policy have also led to an improvement in public finances, with the fiscal deficit for 2021 being significantly lower than initially expected, showing a marked improvement compared to a deficit of 5.7% in the previous year.
Note that public debt in 2021 was reduced to €24.3 billion from €24.9 billion in 2020. As a percentage of GDP, public debt showed a significant reduction of 10.6 percentage points, from 115.3% at end-December 2020 to 104.7% of GDP in 2021.
The State's objective is sustainable growth, which will only be achieved through prudent fiscal policy, driven by investment and the promotion of the necessary reforms through a commitment to the implementation of the National Recovery and Resilience Plan.
Contents of this article including associated images are owned by PIO
Views & opinions expressed are those of the author and/or PIO
Source
