IMF: Growth to slow down in Cyprus
In its World Economic Outlook for October, published on Tuesday, the International Monetary Fund (IMF) forecasts that Cyprus’ growth rate for 2023 will slow to 2.2% of gross domestic product, down from the 2.5% it had projected in its April outlook.
For 2024, the IMF forecasts growth of 2.7% in Cyprus, instead of 2.8% previously.
Additionally, the Washington-based Fund expects that the growth rate for the fourth quarter of 2023 will be 1.8%, while inflation will fall to 3.5% in 2023, compared to the 3.9% projected in April]s outlook. For 2024, inflation is projected to be at 2.4%, instead of 2.5%.
The unemployment rate in Cyprus is forecast to increase slightly to 6.7% for 2023, compared to 6.5% in its last projection, and to increase to 6.4% in 2024, again revised upward compared to the 6.2% forecast in April’s outlook.
The current account deficit is expected to be at 8.6% for 2023, up from 7.8% in April, and the IMF forecasts that it will be 7.9% in 2024, compared to the 7.2% it projected in April.
Regarding the eurozone, the IMF projects a growth rate of 0.7% for this year and 1.2% for next.
