Cyprus is among the top three countries in the Eurozone with the highest growth rate in 2024,  government spokesman Konstantinos Letymbiotis said on Thursday.

In terms of further support measures, he said that the government is always monitoring how things are progressing, and a new, targeted package is possible if needed.

Speaking to journalists at the Presidential Palace as part of the media briefing, Letymbiotis noted that “the spring forecasts of the European Commission indicate the positive trajectory of the Cypriot economy and the increase in economic activity with a strong pace in 2024”.

Moreover, he mentioned that Cyprus ranks among the top three countries in the Eurozone with the highest growth rate in 2024.

“Compared to the Eurozone and the EU, Cyprus’ growth rate is higher by approximately 2 percentage points in 2024, confirming the resilience and flexibility of the Cypriot economy,” he said.

Furthermore, inflation is expected to continue its downward trend towards the target of 2 per cent, in an environment of easing inflationary pressures.

He also noted that the labour market “remains resilient while the fiscal balance remains surplus with public debt decreasing rapidly”.

For the years 2024 and 2025, economic growth is expected to strengthen, as well as employment, which is expected to continue to increase at a relatively stable rate.

Unemployment is projected to remain on a downward trajectory and be limited to 5.6 per cent in 2024 and 5.4 per cent in 2025.

Furthermore, according to the preliminary estimate of the Statistical Service published this week, Cyprus’ growth rate for the first quarter of 2024 is estimated at 3.3 per cent higher when compared to the corresponding quarter of 2023, and 1.2 per cent higher when compared to the fourth quarter of 2023.

According to corresponding data from the European Statistical Service Eurostat, Cyprus’ growth rate for the first quarter of 2024 is the highest among Member States and higher than the Eurozone and EU averages.

“As a government, we will continue to implement policies that set the economy on a growth trajectory, ensuring a strong and resilient economy, fiscal responsibility, and improving the daily lives of our citizens,” the spokesman said.

“As we have demonstrated in these 14 months of governance, implementing President Christodoulides’ ambitious governance programme, through a responsible and sober economic policy, we aim to achieve the further modernisation and upgrading of our country, creating prospects and progress for all our compatriots,” he added.

Asked if the government will announce a new support package if the economy continues to improve, the spokesman said that “because the measures taken and being taken by the government are in line with the positive trajectory of the economy, always taking into account the fiscal data and the capabilities of the Cypriot economy, all measures are constantly evaluated”.

“The latest support package is in effect until the end of June and what we will do as a government, continuously monitoring developments, is to intervene with targeted measures and policies where and when needed,” Letymbiotis concluded.