Cyprus Economic Growth as Forecasted by the International Monetary Fund
The World Economic Outlook published in October saw Cyprus’ economic growth upgraded by the International Monetary Fund (IMF) for 2018 with strong sustainable growth plans extending forecasts well into the future with 2019 respectively upgraded from 4.0% to 4.2%.
The 2019 forecast reviewed by the IMF sees a significant rise in 1.2 percentage units, whereas 2018 increased forecasts have been raised by 0.4 of a percentage unit, as compared to last April’s Spring projections. The IMF’s initial projections forecasted that the Cypriot economic growth would be 3.6% in 2018 and 3.0% in 2019, whilst the Cyprus economy recovered to a growth rate of 3.9% in 2017 with focus being in the areas of construction, tourism and professional services.
The Cyprus News Agency also announced that the IMF also estimates a steady drop in unemployment from 9.5% in 2018 to 8% in 2019, which is a slight reduction as compared to 2017 figures.
The IMF also adjusted its projections to inflation, to the projections of 0.8% in 2018 and 1.8% in 2019, a little higher than originally forecasted, with current account deficit forecasted to drop to 3.1% of GDP in 2018, a significant reduction from the 6.7% of 2017, albeit it projects inflation to rise to 5.2% of GDP in 2019.