The Ministry of Finance’s latest projections paint a promising picture for the Cypriot economy, with GDP growth expected to reach 2.9% in 2024.
These forecasts, released in April and published on the ministry’s website, indicate further expansion in the subsequent years, with GDP set to increase by 3.1%, 3.2%, and 3.3% in 2025, 2026, and 2027 respectively.
Inflation is anticipated to see a dip to 2.5% in 2024, followed by a stable trajectory around 2% until 2027. Meanwhile, the unemployment rate is forecasted to decline from 5.8% in 2024 to 5.1% in 2027, indicating an improving job market outlook.
Fiscal prudence remains a cornerstone of the government’s strategy, with a surplus expected to persist. A surplus of 2.9% of GDP is projected for the current year, with smaller but still robust surpluses of 2.8%, 2.6%, and 2.1% forecasted for 2025, 2026, and 2027 respectively.
Moreover, there’s significant optimism regarding the reduction of public debt. Projections suggest a decline to 70.6% of GDP in 2024, with a continued downward trend to 54.6% by 2027.
