InsiderEconomyIMF upgrades Cyprus' GDP growth rate to 3.5%

IMF upgrades Cyprus’ GDP growth rate to 3.5%

The International Monetary Fund (IMF) has upgraded its forecast on the growth rate of the Cypriot economy for 2022 to 3.5% of the GDP from 2.1% which it expected in April 2022.

However, the IMF also downgraded its estimation for the 2023 growth rate from 2.5% to 3.5% which it expected last April.

According to its World Economic Outlook of October 22, which was published on Tuesday, the IMF expects that inflation in Cyprus will be an average of 8% in 2022 and will drop to 3.8% in 2023. Last April the Fund expected inflation to be at 5.3% in 2022 and 2.3% in 2023.

As regards the unemployment rate, the IMF expects that it will drop to 6.7% in 2022 from 8.5% which it estimated last April, while in 2023 it will further drop to 6.5% from 7.5% according to its previous estimation.

Moreover, the IMF expects that in 2022 the current account balance deficit will be up to 8.5% of the GDP and in 2023 to 7.2% of the GDP.

Last April the “World Economic Outlook” said that the current account balance deficit was expected to be 9.4% in 2022 and 8.3% in 2023.

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