State budget and economic outlook for 2022

The Ministry of Finance is working feverishly to complete the 2022 state budget for submission to the council of Ministers later this month. Once approved, it will then be sent to the House of Representatives for a vote.  This, according to kathimerini reporter Panayiotis Rougalas.

The 2022 budget will be important for Cyprus as it emerges from the pandemic crisis. It will be the first to include recovery funds from the EU which are inextricably linked to reforms. In other words, recovery funds will be disbursed depending on the required reforms undertaken by the government. 

This follows last year’s debacle where Parliament voted against the 2021 budget.  DIKO led the charge and voted NO due to the passport scandal. But after parliamentary elections a few months ago, and with the new make-up of Parliament, there is optimism that the budget will be approved.

According to the Ministry of Finance, the projected growth rate in 2022 is set to be at 3.8%, while for 2023 and 2024 growth estimates are set for 3.2% and 2.8% respectively. The Cypriot economy is expected to report a 3.6% growth for 2021.