Real GDP growth in Cyprus fell into negative territory in 2020 after five years of growth due to the coronavirus (Covid-19) pandemic. The negative growth incorporates the disruption in economic activity due to restrictions on mobility and social distancing measures enacted by the Cypriot government last spring to curb the spread of the Covid-19 virus. The tourism sector has been devastated by Covid-19, with arrivals down by an annual 84% in 2020, whereas domestic demand has shown resilience. The harmful effects of the crisis on the labour market have been mitigated by income support schemes adopted by the Ministry of Labour, Welfare and Social Insurance. The fiscal position deteriorated drastically in 2020, although is expected to be ameliorated with more contained general government deficits throughout 2021 and 2022. Economic output is expected to recover in 2021, reflecting the resumption of economic activity and vaccine deployment.