Cyprus’ Gross Domestic Product (GDP) is projected to rise by 2.9 per cent in 2024, according to the latest estimates released on Thursday by the Finance Ministry, which are valid up to April of this year.

Furthermore, for the years 2025 to 2027, GDP is expected to grow further, with rates of 3.1 per cent, 3.2 per cent, and 3.3 per cent, respectively.

Regarding inflation, the Finance Ministry indicated that it will fall to 2.5 per cent in 2024. Subsequently, for the following years up until 2027, it is anticipated to hover at around 2 per cent.

Additionally, the unemployment rate is also expected to follow a downward trend, decreasing from a projected 5.8 per cent in 2024 to 5.5 per cent in 2025. It will then fall to 5.3 per cent in 2026, before decreasing to 5.1 per cent in 2027.

Moreover, the fiscal balance is expected to remain in surplus. Specifically, a surplus of 2.9 per cent of GDP is anticipated for this year, while smaller surpluses are projected for 2025 to 2027, ranging from 2.8 per cent, 2.6 per cent, and 2.1 per cent, respectively.

In addition to these projections, government debt is also set to experience a significant reduction.

Debt is estimated to fall to 70.6 per cent of GDP in 2024, before continuing its downward trend to 65.5 per cent in 2025, 59.2 per cent in 2026, and 54.6 per cent in 2027.