Cyprus Economy in 2021 - Financial Statistics

The Cypriot economy in 2021 recovered the output lost during the 2020 Covid crisis and will continue to grow at an average rate of 3.7% in the years 2022–2024, the Central Bank of Cyprus expects. In its economic bulletin, it also stresses that risks to the baseline scenario are balanced, albeit slightly on the upside concerning inflation.

The Central Bank of Cyprus said that following the downturn of 5.2% in 2020, the economy is projected to bounce back with 5.6% in 2021, followed by a growth rate of 3.6%, 3.7% and 3.8% in 2022, 2023 and 2024 respectively.

The growth drivers will be the recovery of domestic consumption and net exports, the CBC said, forecasting a continued reduction of unemployment, which is estimated to decline to 5.6% by 2024.