Menu
Economy

IMF: Projections for Cyprus economy revised downwards as part of global economic slowdown

October 16, 2019 at 8:02am
Edited by

The International Monetary Fund downgraded its projections for the Cypriot economy as part of the slowdown of the global economy, due to subdued trade and softer industrial production.

In its World Economic Outlook (WEO) the IMF said that the Cypriot GDP will expand by 3.1% compared with 3.5% of GDP in its April edition, while in 2020 the economy will slowdown to a 2.9% expansion compared with 3.3 in its previous estimate.

Unemployment is projected to reach 8% compared with 7% in the previous estimate to decline to 6% in 2020, the IMF said.

Inflation will remain subdued estimated to reach 0.8% this year and will accelerate to 1.6% in 2020.

Cyprus’ current account will reach a deficit of 7.8% in 2019 and is estimated to decline to 7.5% in 2020.

The Euro area growth rate is estimated to decelerate to 1.2% and will reach 1,5% in 2020.

According to the IMF, the British economy is estimated to expand with a rate of 1.2% and 1,4% in 2019 and 2020 respectively, whereas the US economy is projected to grow by 2.4% of GDP and 2,2% in 2019 and 2020 respectively.

(Cyprus News Agency)