Industrial production in Cyprus rose 1.0 percent year-on-year in December of 2018, easing sharply from an upwardly revised 5.2 percent gain in the prior month. It is the smallest increase in industrial activity since July 2015 as manufacturing grew only 1.1% (6% in November) due to lower production of chemicals & pharmaceuticals (0.8% vs 7.9%). In addition, output declined for mining & quarrying (-11% vs 7%) and water supply and materials recovery (-0.2% vs 5.6%). In contrast, the power supply sector grew 1.9% (1.5% in November). Considering the full year of 2018, industrial production grew 5.3 percent. Industrial Production in Cyprus averaged 0.40 percent from 2000 until 2018, reaching an all time high of 16.50 percent in April of 2002 and a record low of -18.70 percent in December of 2012.
Industrial Production in Cyprus is expected to be 5.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Industrial Production in Cyprus to stand at 5.50 in 12 months time. In the long-term, the Cyprus Industrial Production is projected to trend around 6.00 percent in 2020, according to our econometric models.