Cyprus economy sees highest growth rate in five quarters

The Cypriot economy exhibited its highest growth rate in the last five quarters during the first quarter of 2024, with Gross Domestic Product (GDP) increasing by 3.5 per cent compared to the same quarter of 2023, according to a preliminary estimate by the Cyprus Statistical Service (Cystat).

The 3.5 per cent growth recorded in GDP for the first quarter of 2024 marks the highest since the fourth quarter of 2022, on an annual basis.

After adjustments for seasonal fluctuations and working days, the growth rate is calculated to have reached 3.3 per cent, the highest since the first quarter of 2023 on an annual basis.

Compared to the previous quarter, meaning the fourth quarter of 2023, Cyprus’ GDP increased by 1.2 per cent.

Moreover, the first quarter of 2024 marks the 13th consecutive quarter, starting from the first quarter of 2021, during which the Cypriot economy has recorded positive growth rates on an annual basis.

Furthermore, the growth rate of the economy in the first quarter of 2024 is higher than the recent estimates of the International Monetary Fund (IMF).

In its estimates, the IMF said that it expects Cyprus’ growth rate for 2024 to reach 2.7 per cent, before rising to 2.9 per cent in 2025.

The positive GDP growth rate is mainly attributed, according to the Statistical Service, to the sectors of hotels and restaurants, wholesale and retail trade, repair of motor vehicles, information and communication, construction, arts, entertainment and recreation, as well as other service activities.