IMF revises upward its growth forecast for Cyprus economy

The International Monetary Fund (IMF) revised upward its growth forecast for Cyprus’ economy compared to last April`s forecasts, in its World Economic Outlook (WEO) report released on Tuesday.

The IMF estimates growth to reach 3.4% of GDP in 2017 compared to 2.5% that it projected in April 2017. It is noted that the Cypriot government estimates a growth rate of 3.6% for 2017.

For 2018, the IMF estimates a growth rate of 2.6%, compared to its 2.3% forecast in April, while the government estimates GDP growth to reach 3%.  The IMF estimates also that growth will reach 2.2% by 2022.

At the same time, the IMF estimates inflation to rise by 0.8% in 2017, by 0.7% in 2018 and by 2% until 2022. In April, the IMF estimated that inflation would have reached 1.5% and 1.4% in 2017 and 2018 respectively.

Unemployment is projected to decline to 11.8% this year and to 10.7% in 2018, from 13% in 2016.

The current account deficit is estimated at 3.8% in 2017 from 5.3% in 2016, while in 2018 it is estimated at 2.7%.

Eurozone growth rates for 2017 and 2018 are estimated at 2.1% and 1.8% respectively.

Greek economy will grow 1.8% in 2017 and growth will accelerate further to 2.6% in 2018, as the IMF estimates.

source: CNA