Financial Strategy and Ecosystem Platform Expansion slide image

Financial Strategy and Ecosystem Platform Expansion

Significant recovery of Cyprus economy in 2021 with solid growth outlook A diversifying services-based economy Structure of economy 2020 (current prices % of GVA • • • • • Open, small and dynamic economy which has demonstrated historically that it can quickly recover from economic crises Economy recovered to pre-pandemic levels; GDP grew 6.0%¹ in 4Q2021 and expected to grow by c.4%¹ in 2022 Largest drivers to growth are expected to remain the Trade, Tourism, Professional Services, Shipping & IT services and the Construction sector Tourism performance in 2021 better than initially anticipated; Tourism season extended until October 2021; Oct tourist arrivals at 90% of 2019 levels; Overall arrivals in 2H2021 at c.70% of 2019 levels; Tourism expected to fully recover by 2023-2024 The implementation of Cyprus' Recovery and Resilience Plan (€1.2 bn) is expected to support domestic activity and employment through higher investment and to enhance growth potential via reforms (see slides 53- 54) Tertiary sector 83% 15% 12% 5% 2% 5% Primary sector Secondary sector Information Finance & Insurance 10% Wholesale & Retail trade Real Estate Health & social work 6% Public 9% 4% 10% 8% 7% Transport Accommodation Professional Education Other 7% Strong economic recovery expected to continue in 2022 Annual Real GDP yoy % change 13.4% 14.4% 5.6% 6.0% 3.9% 4.6% GDP expected to grow by c.4% in 2022, above EU Area projections 1) According to Ministry of Finance -210 -4.3% -4.4% 4Q2020 -1.1% 1Q2021 2Q2021 3Q2021 4Q2021 Cyprus Euro Area 7
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