Cyprus’ economy expanded an annual 3% in Q4 2016 after growing 2.9% in the third quarter, the statistical service said citing a preliminary flash estimation.

Power production from renewable energy sources rose 3.4% last year to 357,284.5 megawatt hours (MWh) compared to 2015 mainly on increased output generated by private photovoltaic systems, the energy regulator said.

The government is preparing legislation establishing a central agency tasked with drafting and implementing a national renewable action plan for Cyprus, MPs heard recently.

The European Commission said that it expects growth in Cyprus to gradually slow down over the next years from 2.8% in 2016 to 2.5% this year and 2.3% in 2018, as the high stock of bad loans of Cypriot banks continues to burden growth.

The increase in tourist arrivals in 2016 has translated into a 4.4% increase in revenue from tourism, or a total of €3.5 billion (19.9% of GDP).

After a record 2016, Tourism Minister Giorgos Lakkotrypis expects even more positive results for 2017, barring unforeseen obstacles, he said recently in an address to a hoteliers’ conference in Nicosia.

“The Cypriot economy is recovering, we are making up the ground lost, and we must remain unwaveringly focused on the effort,” Georgiades told reporters at a news conference.

An internet platform aiming to promote Cyprus-based businesses in China and attract investments and tourism to the island has been set up and is to be launched in the summer of 2017, its creators announced.

The Central Bank of Cyprus said that home prices rose marginally in the third quarter of 2016 compared to Q2, with the home price index rising forthe first time in almost seven years to 73.3.

The deficit in Cyprus' external trade balance rose to €781 mn compared to 2015, due to the increase of imports and the small number of exports, according to provisional data for foreign trade released by the Statistic Service of the Republic of Cyprus.