Inflation in Cyprus is expected to slow down in 2023 and 2024 but still be there, according to the European Commission’s Autumn 2022 Economic Forecast.
Specifically, the Mediterranean island’s inflation is expected to increase from 2.3% in 2021 to 8% in 2022 and slow down to 4.2% in 2023 and 2.5% in 2024.
The recently-released Forecast’s chapter on Cyprus noted that following solid growth in the first half of 2022, economic activity is expected to slow down considerably towards the end of the year.
This is due to global headwinds and persistent inflationary pressures.
At the same time, public finances are projected to remain sound but the headline surplus is set to grow at a slower pace than before.
The predictions include reduced unemployment to 7.2% in 2022 and expected to remain stable in 2023 but fall to 6.9% in 2024.
As for real GDP, this increased by 6.3% in the first half of 2022, compared to the same period of 2021, driven mainly by domestic demand.