Cyprus’ economy is growing slightly for 2017 and 2018, according to the International Monetary Fund (IMF), CNA reported on Wednesday.

The IMF’s projections have aligned with the corresponding European Commission evaluations for the next two years.
According to the IMF’s World Economic Outlook report for April 2017, after a GDP of 2.8% in 2016, the IMF estimates that the growth rate will be slightly slowed to 2.5% and in 2019 to 2.3%. Similar estimates were presented by the Commission in February 2017.

The corresponding report in October 2016 estimated that the Cyprus economy’s growth would reach 2.8% and to 2.2% in 2017.

Inflation, however, is entering a positive course, reaching 1.5% in 2017 and 1.4% in 2018.

Unemployment will drop from 12.9% in 2016 to 11.3% this year and even reaching 10.2% in 2019.

Global economic activity is picking up with a long-awaited cyclical recovery in investment, manufacturing, and trade, according to Chapter 1 of this World Economic Outlook. World growth is expected to rise from 3.1% in 2016 to 3.5% in 2017 and 3.6% in 2018. Stronger activity, expectations of more robust global demand, reduced deflationary pressures, and optimistic financial markets are all upside developments.

But structural impediments to a stronger recovery and a balance of risks that remains tilted to the downside, especially over the medium term, remain important challenges.

Source: CNA