The Cypriot economy is slowing down for the next two years, with estimates pointing to a growth rate of 2,5% for 2017 and 2,3% in 2018, while by 2022 it will drop to 2,1%, while in 2016 it stood at 2,8%.
In the forecast report published yesterday by the International Monetary Fund for Global Perspectives, it states that for at least the next five years, the GDP of Cyprus will not be able to reach the levels it was at from 1999 to 2008, where its average growth rate of the Cypriot Economy reached inaccessible to post-crisis data, 4,1%.
At the same time, the IMF estimates that inflation will be around 1,5% for 2017 and 1,4% for 2018, which boosts market optimism, given the deflation that prevailed in previous years due to low demand.
The current account balance will remain negative, hovering around 2,5% of GDP.
With regard to unemployment, which is one of the biggest blows to the economy along with red loans, the Fund predicts that labor market conditions will continue to improve, falling from 12,9% in the previous year. 2016, at 10,2% in 2018. This is a significant sign of recovery for the post-crisis era, at a time when the real economy is struggling to recover with bank funding falling by the drop.
In the big picture of the European economy, according to the forecast report, the eurozone is expected to grow at a rate reaching 1,7% in 2017, while in 2018 there will be a marginal slowdown of 1,6%
Impressive are the estimates for Greece, which for 2017 is expected to have a growth rate of 2,2%, with 2018 estimated to be able to increase even more speed, reaching 2,7%, while in 2016 the growth was moving at zero levels.
At the same time the United Kingdom, which is moving at a Brexit pace, but has not yet clarified how and when to leave the European Union, growth will reach 2% for 2017, while for 2018 forecasts show deceleration of 1,5%.
Source: SigmaLive