Based on IMF estimates, the growth rate for 2024 is estimated at 2.7% and for 2025 at 2.9%
In today's announcement, the Ministry of Finance welcomed the new estimates of the International Monetary Fund ( IMF) in the framework of the World Economic Outlook (WEO).
Based on IMF estimates, the growth rate for 2024 is estimated at 2.7% and for 2025 at 2.9%. The forecast for 2024 remains the same as the IMF's previous one (WEO October 2023). A significant improvement is seen in unemployment, which is forecast for 2024 and 2025 to decrease to 5.9% and 5.7%, respectively, and is lower by 0.5 pp. approximately from previous IMF forecasts. Inflation is forecast at 2.3% and 2.0% in 2024-2025, respectively, with increases being 0.1-0.2 percentage points lower, respectively, than the IMF's previous forecasts.
“These estimates are better than the previous ones and quite close to those of the Ministry of Finance and recognize the resilience and prospects of the Cypriot economy as stated by the head of the IMF staff after the completion of the consultations in March 2024, in the context of the assessment of the Cypriot economy , by virtue of Article IV of the IMF”, reports the Ministry of Finance.
The Ministry also notes that “the positive developments in the economy, despite the challenges and uncertainty, show the resilience of the Cypriot economy to external shocks, based on the healthy financial indicators and the good performance of the economy, especially in the tourism and other services sectors “.
“However, uncertainty around the macroeconomic outlook remains high, given the challenging external environment from the ongoing Russia-Ukraine war and the ongoing and looming conflict in Israel and the Gaza Strip. to escalate into a more extensive conflict in the Middle East”, he adds.
Finally, the Ministry of Finance notes that, as at this stage it is impossible to predict the duration of the conflict and its eventual escalation, it is not possible to quantify any risks in the Cypriot economy.
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