European Commission staff, in liaison with staff from the European Central Bank, visited Cyprus from 27 to 31 March to conduct the second post-programme surveillance mission. Cyprus is currently benefiting from robust growth and improving conditions in the financial sector. Growth is becoming more broad-based, driven by private consumption, investment and strong tourism. Real GDP growth is expected to be close to 2.5% in 2017, an increase over 2016, and is expected to remain strong in 2017, while moderating thereafter. Fiscal consolidation has helped facilitate capital market access by the Cypriot government. Moreover, important structural reforms adopted in recent years have allowed Cyprus to turn the corner, with growth returning and the labour market situation improving. To sustain growth in the future, however, continued fiscal discipline and a renewed structural reform momentum are crucial.