Cyprus Economy Update
24 Aug 2017Company registrations
New company registration applications recorded an increase of 1.2% in the first half of 2017. Specifically, the number of applications amounted to 6.442, compared with 6.366 in the same period last year. According to the Department`s data, in June the number of applications for registration of a new company amounted to 954, compared with 1.016 in June 2016. The number of new company registrations recorded a decline only in 5 out of the 20 last months.
Compared to May 2017, the number of applications has decreased by 16.4%. Moreover, according to the Registrar of Companies, the number of applications for name approval rose to 2.255 in June 2017, compared with 2.325 in June 2016, showing an increase of 4.2%.
The total number of registered companies stood at 213.276 at the end of June 2017, compared with 213.206 at the end of the previous month. The new registrations in the first half of 2017 amounted to 6.308.
Tourism
Arrivals
On the basis of the results of the Passengers Survey, arrivals of tourists reached 472.450 in June 2017 compared to 413.114 in June 2016, recording an increase of 14,4%. June 2017 had the highest volume of tourist arrivals ever recorded in Cyprus during the specific month.
For the period of January – June 2017 arrivals of tourists totaled 1.463.206 compared to 1.255.240 in the corresponding period of 2016, recording an increase of 16,6% and outnumbering the total arrivals ever recorded in Cyprus during the first six months of the year.
Revenue
On the basis of the results of the Passenger Survey, revenue from tourism reached €291,5 million in May 2017 compared to €244,7 million in the corresponding month of the previous year, recording an increase of 19,1%.
For the period of January – May 2017 revenue from tourism is estimated at €649,2 million compared to €530,2 million in the corresponding period of 2016, recording an increase of 22,4%.
Cyprus upgraded by Moody’s
Moody`s rating agency on the 28th of July 2017, has upgraded government bond ratings of Cyprus by one notch, to Ba3 from B1. Moody’s maintained a positive outlook and said the short-term ratings have been affirmed, at Not Prime (NP) and (P)NP.
The fact that Moody’s maintained the prospects of the Cypriot economy on a positive outlook means that it will probably proceed with a new credit rating upgrade in the next assessment of Cyprus in November. Cyprus is now three upgrades away from the investment grade of Moody’s.
According to Moody’s, the key drivers for the rating action are improvements in economic resilience that have occurred over the past two years and that seem likely to continue in the medium term, as well as the consistent fiscal outperformance and continuing favorable fiscal outlook for Cyprus.
The decision to maintain a positive outlook on the rating of Cyprus reflects Moody`s view that improvements in economic resilience and continuing fiscal outperformance are likely to be sustained, with a reduction in the debt-to-GDP ratio as well as a fall in the stock of non-performing loans held by the banks.
