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10.05.2018

The European Commission highly assessed the economic prospects of Cyprus

3 May, the European Commission published a forecast for the development of the economy of Cyprus in 2018 and 2019. According to her estimate, in the current and next years, Cyprus's GDP will grow by 3,6% and 3,3%, respectively.

The Ministry of Finance of Cyprus expects economic growth at the level of 4% this year and 3,6% next.

Bank Hellenic predicts even more impressive results - an increase of 4,2% only in 2018 year.

All three structures agree that support for growth will be due to the following factors:

  • strengthening demand in the domestic market,
  • the growth of investments, especially in the sphere of large construction and infrastructure projects,
  • improve the situation on the labor market. Unemployment will decrease to 9,2%,
  • low inflation, at 0,5% in 2018 and 1% in 2019 years

 Do not forget about the risks. Among the main:

  • high levels of non-performing debt,
  • unemployment,
  • state debt in relation to GDP.

This makes Cyprus vulnerable to unforeseen external shocks and delays in reform.

Experts point out that economic growth will be strong and sustainable, in 2018 the state debt will grow, but in 2019 again it will decrease.

A source: Cyprus Butterfly

Author: Catty Cage

Tags: Cyprus, Economy, European Commission, Statistics

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