According to the World Economic Outlook of the International Monetary Fund the Cypriot economy will grow by 4.8% in 2021. In 2020 a recession of 5.1% was recorded. The previous forecast of the IMF from April 2021 was less optimistic and expected a growth of only 3% for 2021.
According to the IMF, growth for 2022 is predicted to be 3.6%. The forecast of the Ministry of Finance is more optimistic, expecting a growth rate of 4%. Further, the IMF estimates that unemployment will fall in 2021 from 7.6% in 2020 to 7.5%. In 2022 the decrease in unemployment will be more significant and is expected to fall to 6.9%. Further, the IMF estimates that inflation in 2021 will rise to 1.7% from -1.1% in 2020 and will fall to 1% in 2022.
Originally published 15 October, 2021
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