The forecast is bleak for EU countries which are expecting strong recession in 2023, yet Finance Minister Constantinos Petrides on Monday reiterated the forecast for 3% growth in Cyprus. Along with a decline in the upward trend of inflation to 3%, Philenews reports.
Nonetheless, Petrides also told House Finance Committee members that significant uncertainty and downside risks to the growth outlook remain because of the war in Ukraine and the bloc’s energy crisis.
Inflation is forecast to average 7% this year and to decelerate to 3% in 2023.
Presenting the 2023 state budget to Parliament, Petrides also said inflation will logically subside as the rise in fuel prices and other energy products cannot continue.
And that a significant reduction in natural gas prices has already been recorded.
However, the Minister reminded that fuel prices remain high enough and an imminent hike of interest rates by the European Central Bank won’t help either.
The solution to the crisis, he added, is development but a new government will take over in February and the policy to be followed is unknown.
