Cyprus Economic Outlooksupport
Detailed national accounts data showed that the economy contracted at a record pace in Q2, as pandemic-related restrictions pummeled household consumption, capital spending and exports. Available data for Q3 suggests that economic momentum remains fragile. Merchandise exports dropped notably in July on plunging dispatches to the EU, while tourist arrivals collapsed by more than 80% year-on-year in both July and August. Moreover, consumers turned significantly more pessimistic in August, while confidence in the services sector, the backbone of the economy, remained deeply in pessimistic territory, despite improving somewhat. Meanwhile, in a bid to continue softening the downturn, on 3 September the government announced it would extend its financial support schemes for workers and businesses, worth EUR 106 million, until the end of October.
Link to the official article: https://www.focus-economics.com/countries/cyprus