IMF: Mod­er­ate growth of 2% by 2021

Financial Mirror (Cyprus) - - FRONT PAGE -

The Cyprus econ­omy will grow at a mod­er­ate rate of no more than 2% up to 2021, ac­cord­ing to the IMF World Eco­nomic Out­look (WEO) for April.

For the medium term, the IMF pre­dicts that the Cyprus GDP will grow by 1.6% in 2016 and by 2.0% in 2017, with the growth rate for 2016 to be slightly im­proved com­pared to the WEO on Oc­to­ber 2015, which was 1.4%. How­ever in the WEO of last Oc­to­ber, the IMF had pre­dicted a growth rate of 0.5% in 2015, while the real growth rate was 1.6%.

Ac­cord­ing to the IMF, in the fourth quar­ter of 2016 Cyprus GDP will grow by 1.6% (com­pared to the same quar­ter of the pre­vi­ous year), while growth in the fourth quar­ter of 2017 will reach 2.3%.

Ac­cord­ing to the WEO re­port, the har­monised in­fla­tion will con­tinue in 2016 to be in neg­a­tive ter­ri­tory, of up to - 0.3% and in the frame­work of the fur­ther devel­op­ment of the econ­omy in 2017 will reach 1.3%.

Un­em­ploy­ment, ac­cord­ing to IMF mea­sure­ments, reach 14.2% in 2016 to de­cline to 13.0% in 2017.

The deficit in the cur­rent ac­count will fall to 4.8% of GDP in 2016 from 5.1% in 2015 and will de­crease marginally to 4.7% of GDP in 2017

The fore­casts for the eu­ro­zone re­main un­changed, with a growth rate of 1.5% and 1.7% in 2016 and 2017 re­spec­tively, while in­fla­tion re­mains at low lev­els at 0.4% in 2016 to ac­cel­er­ate in 2017 at 1.1%.

At the same time, the IMF down­graded marginally its base­line sce­nario for the growth rate of the world econ­omy at 3.2% in 2016, 0.2% lower than in the WEO of last Jan­uary, while for 2017 the growth rate is pre­dicted to 3.5%.

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