![](\"https:\/\/www.financialmirror.com\/wp-content\/uploads\/2024\/04\/UCy-EconomicOutlook_04_2024_1-3.jpg\")
<\/p>\n","protected":false},"excerpt":{"rendered":"Real activity growth in Cyprus is expected to continue this year at a similar pace as in 2023 and to gather momentum in 2025, according to a quarterly survey published by the University of Cyprus.<\/p>\n
The April \u2018Economic Outlook\u2019 produced by the university\u2019s Economics Research Centre expects real GDP growth at 2.6% in 2024 and at 3.3% in 2025. The growth forecasts have been revised up, by 0.2 percentage points for 2024 and by 0.1 percentage point for 2025, relative to the January issue.<\/p>\n
Economic growth in Cyprus slowed to 2.5% in 2023, from 5.1% in 2022. In the final quarter of 2023, the year-on-year (y-o-y) growth rate of real GDP moderated to 2.2%, compared with 2.4% in the third quarter, but remained well above the EU average.<\/p>\n
Economic activity and the labour market in Cyprus remained resilient in the final quarter of 2023, fuelling growth in the following quarters.<\/p>\n
Over the last two quarters domestic activity has been backed by falling inflation, a relatively tight labour market, increases in earnings, and the strong fiscal position.<\/p>\n
However, the high levels of domestic interest rates, sliding domestic economic sentiment, and weak activity in trading partner economies weigh on the growth outlook.<\/p>\n
Forecasts by other organisations point to a robust growth outlook in 2024 and 2025.<\/p>\n
Real GDP growth in Cyprus for 2024 is forecast at 2.8% by the Central Bank and the European Commission, and at 2.7% by the International Monetary Fund.<\/p>\n
Growth in 2025 is projected to pick up to around 3.0% by the above organisations (3.1%, 3.0% and 2.9% according to the Central Bank, the European Commission, and the International Monetary Fund, respectively).<\/p>\n
Inflation is projected to remain on a downward trajectory over 2024-2025. CPI inflation is forecast at 2.0% in 2024 and at 1.9% in 2025, lower by 0.1 percentage point in each year vis-\u00e0-vis the forecasts in the January issue of the \u2018Economic Outlook\u2019, as domestic inflation eased further during the first quarter of the current year.<\/p>\n
Risks to the outlook for growth and inflation stem primarily from increased geopolitical tensions, especially a possible escalation of the conflict in the Middle East, the economic performance of trading partner economies, and the future path of interest rates. <\/p>\n","protected":false},"excerpt":{"rendered":"
Real activity growth in Cyprus is expected to continue at a similar pace as in 2023 and gather momentum in 2025, with real GDP growth forecasted at 2.6% in 2024 and 3.3% in 2025. The growth forecasts have been revised up from previous estimates.<\/p>\n","protected":false},"author":4,"featured_media":9842,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[1902,4601,6432,3,644,641,4734,645,376,26,307,6331,379,1841,7593,4081,696,60,308,3873,3767,7544,67,899,1401,187,839,1821,69,3138,6074,1229,468,4090,309,7850,832],"class_list":["post-9841","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cyprus","tag-bank","tag-central-bank","tag-conflict","tag-cyprus","tag-cyprus-gdp","tag-earnings","tag-economic-activity","tag-economic-growth","tag-economic-sentiment","tag-economy","tag-erc-economics-research-centre","tag-escalation","tag-eu","tag-european-commission","tag-fiscal-position","tag-future","tag-gdp","tag-gdp-growth","tag-geopolitical","tag-geopolitical-tensions","tag-growth","tag-growth-rate","tag-inflation","tag-interest","tag-interest-rates","tag-international","tag-labour","tag-labour-market","tag-middle-east","tag-performance","tag-research","tag-survey","tag-tensions","tag-ucy","tag-ucy-university-of-cyprus","tag-university","tag-university-of-cyprus"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\n