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news | 17 May 2018 | ServPRO Accountants & Consultants

Cyprus Economy Growth Rate in 2018 revised to 3.2% – EBRD

The European Bank for Reconstruction and Development (EBRD) significantly revised its projection for Cyprus’ growth rate in the year 2018 to 3.2%, from its previous projection of 2.5%.

According to EBRD’s publication on 2018 economic forecasts: “The EBRD has revised up economic forecasts for 2018 as a broad-based recovery continues across its regions, bolstered by stronger investment activity and higher exports.”

EBRD estimates that Cyprus’ growth rate will ease down to 3% in 2019, according to a statement on its website last week.

Coming out of a long and hard recession in 2015, Cyprus expanded by 3.9% last year, the highest rate since 2008, and 3.4% in 2016, allowing the unemployment rate to drop to a single digit in 2018, for the first time in years.

EBRD noted that last year’s growth was driven by both investment and private consumption, also adding that fixed capital formation exceeded 1/5 of economic output last year for the first time since 2010.

“After many years of negative contribution to growth, government spending also provided a small growth boost,” EBRD said, further noting that fiscal performance remained strong last year when the government generated a budget surplus of 1% of the economy.

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