Clik here to view.
By Stelios Orphanides
The International Monetary Fund said that it expects Cyprus’s economy to grow 1.5 per cent in 2016, after expanding 1.4 per cent in 2015, before growth accelerates to 2 per cent in 2017.
“Further gradual progress in lowering unemployment is expected over the medium term,” the IMF said on Friday in a statement on its website, three days after releasing a €126.3m tranche of bailout money. ““The outlook remains subject to risks. On the negative side, risks relate to slow progress in addressing the high level of non-performing loans in the banking system and the drag on private credit, the possibility of spillovers -largely through confidence effects- from Greece, and developments in Russia”.
“On the positive side, continued recovery of domestic demand, the effect of depreciation of the euro on exports, and the potential for some positive spillovers from Greece provide some upside,” the IMF added.
As a result of low energy prices, the IMF said that it expects consumer prices to drop 1.6 per cent this year before falling a further 0.6 per cent next year.
The finance ministry expects the Cypriot economy to grow by about 2 per cent this year.
The post IMF sees Cyprus’s growth rate at 1.5% in 2016 “subject to risks” appeared first on Cyprus Mail.
