Cyprus: IMF sees “mod­est” re­cov­ery, 0.5% in 2015, 1.4% in 2016

Financial Mirror (Cyprus) - - FRONT PAGE -

The In­ter­na­tional Mon­e­tary Fund’s World Eco­nomic Out­look said that the re­cov­ery of the Cypriot econ­omy this year will re­main “mod­est” with an es­ti­mated growth rate of 0.5% for the whole of 2015, af­ter shrink­ing by 2.3% in 2014, while for 2016 it main­tains its growth es­ti­mate of 1.4%.

Un­em­ploy­ment is ex­pected to re­main at the high lev­els of 16% in 2015, from 16.1% in 2014, while for 2016 it is ex­pected to de­cline to 15%.

In­fla­tion is ex­pected to reach 1% this year from a de­fla­tion of -0.3% in 2014, while in 2016 it is ex­pected to reach 0.9%.

The IMF ex­pects the cur­rent ac­count deficit to fall to 4.2% of GDP this year from 4.5% in 2014, while for 2016 it is ex­pected to fall fur­ther to 3.8%.

The eu­ro­zone is ex­pected to grow by 1.5% this year and by 1.6% in 2016, while in Greece, the econ­omy is ex­pected to shrink by 2.3% this year fol­low­ing a growth of 0.8%, and in 2016 de­cline is seen at 1.3%.

For the global econ­omy, the IMF notes that six years af­ter the world emerged from its broad­est and deep­est post-war re­ces­sion, a re­turn to ro­bust and syn­chro­nised global ex­pan­sion re­mains elu­sive.

The US econ­omy is forecast to grow by 2.6% in 2015 and 2.8% next year, while Rus­sia is ex­pected to shrink by 3.8% this year and by 0.6% in 2016.

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