Macro - Country Economic Forecasts - Cyprus

Macro - Country Economic Forecasts - Cyprus

We've lowered our 2023 GDP growth forecast for Cyprus by 0.1ppt and raised our projection for 2024 by 0.3ppts since our last update. Cyprus's GDP contracted 0.4% q/q in Q2, but underlying momentum is likely stronger. Indeed, consumption and exports are growing at solid rates. The drag in Q2 was mainly because of a 40% drop in investment and a material fall in inventories.