According to the credit rating agency the rating upgrade reflects “Cyprus’ stronger-than-anticipated economic and public finance performance during 2021 and DBRS Morningstar’s expectation that medium-term conditions remain supportive of Cyprus’ debt reduction efforts, despite risks posed by Russia’s invasion of Ukraine and the pandemic.”
“The Cypriot economy exceeded its pre-pandemic real gross domestic product level during 2021, in spite of the only partial recovery of the tourism sector. The fiscal repair has progressed much faster than anticipated in 2021, with the fiscal deficit falling to 1.8% of GDP from 5.6% of GDP in 2020, mainly driven by strong revenue growth," the rating agency noted.
