Finance Minister, Makis Keravnos, on Wednesday welcomed the International Monetary Fund’s (IMF) estimates on Cyprus noting that they confirm the Government’s estimates and the continued growth path and resilience of the country’s economy.
In his statements after a meeting of the Council of Ministers at the Presidential Palace, Keravnos welcomed the latest IMF estimates – its October edition of the World Economic Outlook – noting that ‘its estimates are always much more conservative, even than our own conservative estimates.’
As you know, he said, ‘the International Monetary Fund is one of the organisations that still monitor developments in Cyprus, after the crisis we had’, but that it also monitors developments in Europe and worldwide.
The Minister said that the IMF predicts that global growth will slow from 3.3% in 2024 to 3.2% in 2025 and to 3.1% in 2026. ‘As for Cyprus, the IMF presents improved estimates for our economy, according to which a growth rate of 2.9% on average throughout the period 2025-2028, is expected’, he added. ‘Inflation is expected to decrease to 0.7% in 2025, which is also our forecast, and then increase to 1.3% in 2026,’ adding that this estimate ‘is still much more improved than our own estimate.’
Keravnos said that according to IMF estimates, unemployment is expected to decrease to 4.5% and that the fiscal balance is expected to maintain a surplus of 3% of gross domestic product on average for the entire 2025-2028 period.
He expressed satisfaction with the IMF estimates, because, as he said, ‘they confirm our estimates, and the continued, good growth trajectory and resilience of Cyprus’ economy’.