The International Monetary Fund downgraded its projections for the Cypriot economy as part of the slowdown of the global economy, due to subdued trade and softer industrial production.
In its World Economic Outlook (WEO) the IMF said that Cyprus’ GDP would expand by 3.1 per cent compared with 3.5 per cent of GDP in its April edition, while in 2020 the economy will slow down to a 2.9 per cent expansion compared with 3.3 in its previous estimate.
Unemployment is projected to reach 8 per cent compared with 7 per cent in the previous estimate to decline to 6 per cent in 2020, the IMF said.
Inflation will remain subdued estimated to reach 0.8 per cent this year and will accelerate to 1.6 per cent in 2020.
Cyprus’ current account will reach a deficit of 7.8 per cent in 2019 and is estimated to decline to 7.5 per cent in 2020.
The Euro area growth rate is estimated to decelerate to 1.2 per cent and will reach 1.5 per cent in 2020.
According to the IMF, the British economy is estimated 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 respectively.