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Cyprus central bank revises upward economic growth rate

Source: Xinhua| 2017-12-23 01:21:44|Editor: yan
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NICOSIA, Dec. 22 (Xinhua) -- The Central Bank of Cyprus on Friday revised upwards its June projection for economic growth, citing better-than-expected public finances and tourism.

In its December financial bulletin, the bank said it expects GDP at the end of 2017 to expand by 3.8 percent, compared to a 3.2 percent in June.

It also said it expects the economy to grow by 3.4 percent in 2018, up from its previous 3.2 percent projection.

The central bank said risks to the outlook are balanced and are associated with a reduction in non-performing loans, a legacy of the 2013 economic crisis and the resolution of the banking system.

"High stock or non-performing loans, although reduced, continue to constitute a hindrance to the full consolidation of the banking system of Cyprus... and its ability support growth with sustainable funding," the bank said.

It also said it expects Brexit to affect external demand in the services section as Britain is a major commerce and tourism partner of Cyprus.

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