The International Monetary Fund has downgraded its projections for the Cypriot economy due to subdued trade and softer industrial production amid a global slowdown.
In its World Economic Outlook (WEO), the IMF said that the Cypriot GDP will expand by 3.1 per cent compared with 3.5 per cent of GDP in its April edition, while in 2020 the economy will drop further to 2.9 per cent against its previous estimate of 3.3 per cent.
Unemployment is expected to reach 8 per cent, instead of 7 per cent, but it is expected to fall to 6 per cent by 2020, the IMF said.
Inflation will remain subdued at 0.8 per cent this year and will accelerate to 1.6 per cent in 2020.
Cyprus’ current account will run a deficit of 7.8 per cent in 2019, expected to fall to 7.5 per cent in 2020.
The Euro area growth rate is estimated to decelerate to 1.2 per cent and 1.5 per cent in 2020.
According to the IMF, the British economy is expected to expand with a rate of 1.2 per cent and 1.4 per cent in 2019 and 2020 respectively, whereas the US economy is projected to grow by 2.4 per cent of GDP and 2.2 per cent in 2019 and 2020.