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Impressive Growth in Cyprus Tourism Revenue: €223.3m in Q1 2024, Surging 11.7% YoY

Revenue from tourism reached an estimated €223.3m in January–March 2024, rising 11.7% compared to €200m in the first quarter of 2023, Cystat said.

Based on the results of its Passengers Survey, in March, revenue from tourism reached €113m, compared to €97.8m in the corresponding month of 2023, recording an increase of 15.5%.

The average expenditure per person was €558.88 in March 2024 compared to €530.72 in March 2023 (up 5.3%).

Tourists from the United Kingdom, again Cyprus’ largest tourist market with 31.8% of the total in March, spent on average €73.49 per day, while tourists from Poland, the second largest market with 10.4% of total tourists, spent on average €75.86.

Tourists from Germany, the third largest market with 9.8%, spent on average €98.66 per day, while tourists from Greece with 9% of the market, spent on average €43.37 per day.

Finally, tourists from Israel, the fifth place on the market with 8.2%, spent on average €143.21 per day.

Fed Leaves Room For Potential Interest Rate Cuts In 2024

The US Federal Reserve (Fed) has signalled the possibility of two interest rate cuts within this year, with the first potentially occurring as early as September. This comes despite updated economic forecasts that indicate only one cut for the year. Fed Chair Jerome Powell emphasized the need for a cautious approach, relying on more economic data before making further decisions. Currently, the Federal Open Market Committee (FOMC) has kept the benchmark rate steady at 5.25%-5.5%, the highest in over two decades.

Economic Context and Projections

The Fed’s decision to maintain the current rates is driven by ongoing evaluations of inflation trends and economic growth. Although the market anticipates potential cuts, the Fed has not committed to specific dates, preferring a data-driven approach. The possibility of rate reductions reflects an adaptive strategy to support economic stability amid fluctuating economic indicators.

Market Reactions

Market analysts predict over a 50% chance of a rate cut in September, indicating significant anticipation among investors and financial markets. This cautious optimism is mirrored in the Fed’s statements, suggesting readiness to adjust policies as necessary to foster favorable economic conditions.

Future Outlook

As the year progresses, the Fed will closely monitor economic data, including employment rates, inflation, and GDP growth, to guide its decisions on interest rates. This flexible approach aims to balance economic growth with inflation control, ensuring sustained economic health.

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