The Ministry of Finance on the occasion of the winter forecasts of the European Commission notes that the forecast for the contraction of the Cypriot economy in 2020, amid the Covid pandemic, has been reduced to 5.8% from 6.2% of the autumn forecasts, thus converging with the forecasts of the Government.
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In a statement, YPOIK points out that the rate of contraction of the economy in Cyprus in 2020 is expected to be one unit lower than the rate of contraction of the economy in the Eurozone as a whole, which is expected to reach 6.8%, while characterizing as particularly The comparison of Cyprus with most of the tourist countries of the European Union is favorable, which according to the forecasts will have a recession of more than 9%.
“The European Commission confirms the possible recovery of the Cypriot economy in the third quarter of 2020 (+ 9.4% compared to the second quarter) which occurred due to the high domestic demand which according to the Commission itself was the result of government measures support for the economy, which, however, was stopped due to the restrictive measures for the pandemic that were imposed at the end of the year “, adds YPOIK.
Regarding the forecasts for 2021 and 2022, the Ministry of Foreign Affairs notes that the Commission predicts that Cyprus will return to a growth trajectory with a positive growth rate of 3.2% and 3.1% respectively, noting that “estimates do not take into account potential costs related to the Recovery Fund, which would lead to an even better forecast “.