IMF upgrades Cypriot economy 2022 growth rate compared to April forecast

The International Monetary Fund (IMF) has upgraded its forecast on the growth rate of the Cypriot economy in 2022 to 3.5 per cent of the GDP from 2.1 per cent that it expected in April 2022, while it downgraded its estimation for the 2023 growth rate from 2.5 per cent to 3.5 per cent that it expected last April.

According to its World Economic Outlook of October ’22, that was published on Tuesday, the IMF expects that inflation in Cyprus will be in average 8 per cent in 2022 and will drop to 3.8 per cent in 2023. Last April the Fund expected inflation to be at 5.3 per cent in 2022 and 2.3 per cent in 2023.

As regards the unemployment rate, the IMF expects that it will drop to 6.7 per cent in 2022 from 8.5% that it estimated it last April, while in 2023 it will further drop to 6.5 per cent from 7.5 per cent according to its previous estimation.

Moreover, the IMF expects that in 2022 the current account balance deficit will be up to 8.5 per cent of the GDP and in 2023 to 7.2 per cent of the GDP.

Last April the “World Economic Outlook” said that the current account balance deficit was expected to be 9.4 per cent in 2022 and 8.3 per cent in 2023.