Menu
Business

IMF revises Cypriot economy growth projections upwards

October 9, 2018 at 12:41pm
Edited by

The International Monetary Fund (IMF) has upwardly revised its projections on the Cypriot economy’s growth for 2018 and 2019 at the World Economic Outlook published this October, expecting a growth rate of 4.0% and 4.2% respectively.

For 2019 in particular, the IMF`s review is greater by 1.2 percentage units while for 2018 it is higher by 0.4 of a percentage unit, compared to the spring projections published last April. The international body expected then that the Cypriot economy would grow at a rate of 3.6% in 2018 and 3.0% in 2019. In 2017 the Cypriot economy grew by 3.9%.

The IMF also estimates that unemployment will gradually drop from 11.1% in 2017, to 9.5% in 2018 and 8% in 2019, compared to 10.0% and 9.1% respectively that it had projected last April.

It further projects that inflation will be recorded at 0.8% in 2018 and 1.8% in 2019 compared to 0.7% last year. In its spring projections it said it had expected 0.4% inflation for this year and 1.6% in 2019.

The IMF expects a significant drop of the current account deficit in 2018 to 3.1% of GDP compared to 6.7% in 2017. However, it projects that it will increase by 5.2% of GDP in 2019.

(Cyprus News Agency)