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