IMF sees economic growth in Cyprus

The IMF, in its 2015 World Economic Outlook report released yesterday, forecasts a GDP increase of 0.2% for the Cyprus economy in 2015 and a 1.4% increase in 2016.

The report also forecasts deflation of 1% in 2015, followed by inflation of 0.9% in 2016. In its forecasts the IMF also expects a deficit of 1.9% in 2015 and 1.4% in 2016.

Unemployment is expected to drop to 15.9% in 2015 and 14.9% in 2016.

Also, despite forecasting growth of 2.5% for the Greek economy during 2015 the IMF warned of uncertainty affecting the economic climate, including over the management of the Greek economic crisis by the Eurozone, the effects of an ageing population, low levels of investment, and low productivity.

Greece, the IMF continues, is a source of weakness for the Eurozone and the economic pressure created by the political uncertainty related to the country’s economic crisis, as well as other political crises in the Eurozone, could reinvigorate talk on the relationship between banks, public debt and the real economy.

The report notes characteristically that uncertainty and pessimism in relation to the decisiveness of the Eurozone in dealing with economic challenges may hurt trust.

Finally, the report forecasts growth of 1.5% for the Eurozone in 2015, and inflation of 0.1%.

SOURCE: GOLD NEWS