Newsroom / CNA
International Monetary Fund (IMF) Resident Representative Office in Cyprus clarifies in a written statement that Cyprus’ GDP is projected to grow by 4–4¼ percent during 2018-19, after the release of the spring World Economic Outlook (WEO) forecasts.
“While the WEO forecasts still point to slight near-term deceleration in GDP growth for Cyprus, it is important to note that, according to a later assessment at the time of the recent second post-program monitoring discussions, the current rapid pace of economic expansion is forecast to continue”, said a written statement to CNA by IMF official Vincenzo Guzzo.
“GDP is projected to grow by 4–4¼ percent during 2018-19, underpinned by a pipeline of mainly foreign-funded, large construction projects, notwithstanding somewhat slower growth in private consumption due to better compliance by households with regard to their contractual debt obligations.
"Only over the medium term, growth is projected to ease to 2.5 percent as construction projects are gradually completed,” he added
According to the forecasts included in the WEO, based on previous assessments, the Cypriot economy is expected to record a growth rate of 3.6% in 2018 and 3% in 2019 - lower than last year's 4% and the IMF prediction.