IMF Staff Country Reports

Cyprus: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus

May 28, 2024

Download PDF More Formats on IMF eLibrary Order a Print Copy
More formats on IMF eLibrary Order a Print Copy

Preview Citation

Format: Chicago

International Monetary Fund. European Dept. "Cyprus: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus", IMF Staff Country Reports 2024, 137 (2024), accessed December 22, 2024, https://doi.org/10.5089/9798400276408.002

Export Citation

  • ProCite
  • RefWorks
  • Reference Manager
  • BibTex
  • Zotero
  • EndNote

Summary

The 2024 Article IV Consultation discusses that Cyprus recovered swiftly from the pandemic and has proven resilient to multiple adverse shocks. Growth moderated in 2023 with slowing consumption growth, lower services exports to Russia, and fading post-pandemic base effects. However, growth has remained above the euro area average, supported by a continued recovery in tourism, expanding financial services and information and communication technology activity, and strong investments. The labor markets are tight, with unemployment at a near two-decade low. Headline inflation dipped below 2 percent, but core inflation has been more persistent. Growth is expected to stabilize in 2024 and rise to 3 percent in the medium term. Driven by robust revenue growth, the primary surplus increased further in 2023, contributing to a large decline in public debt. The authorities’ planned neutral fiscal stance in 2024 is appropriate. Further, primary surpluses should be maintained until debt falls comfortably below 60 percent of gross domestic product. Further judicial and labor market reforms are necessary to streamline the business environment and reduce skill mismatches, both of which will support the ongoing diversification of Cyprus’ growth model.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Financial institutions, International organization, Labor, Labor markets, Monetary policy, Nonperforming loans, Public debt

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Credit sector restructuring, EFF arrangement, EFF credit, Global, Growth model, Labor markets, Middle East, Nonperforming loans, Property price statistics

Publication Details

You May Also Be Interested In...

How Has Dollarization Served Timor-Leste So Far?

December 20, 2024

A Confidence-Financial Inclusion Nexus in the Caucasus and Central Asia?

December 20, 2024

Ukraine: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

December 20, 2024

Islamic Republic of Mauritania: Selected Issues

December 20, 2024