ECONOMY

IMF expects shallower recession in Cyprus than previously forecast

The IMF said on Wednesday it expected a narrower recession in Cyprus than it had previously forecast for 2014, but it cautioned against “reform fatigue” in the bailed-out eurozone nation after a new round of aid was held up by a dispute over foreclosures.

Yesterday the International Monetary Fund said it now expects output to contract 3.2 percent this year, a full percentage point less than its July estimate of the scale of the fall in output.

It is the third time the IMF has revised its estimates this year as Cyprus has defied expectations of a deeper recession after coming close to bankruptcy 18 months ago.

[Reuters]