The government is forecast to generate a primary surplus of 1.3% of gross domestic product in 2015which will increase to 2.4% next year, after posting a 2.3% primary surplus last year, the IMF said in its Fiscal Monitor posted on its website.

As a result of the forecast fiscal performance, the government’s debt is expected to drop to 106.4% of the economy in 2015 from 107.5% last year, the IMF said. In 2016, it is expected to further drop to 98.4% and so drop below the 100% mark for the first time since the 2013 bailout. Public debt is also forecast to gradually drop to 77.8% by 2020, which is slightly below Cyprus’ public debt level in 2012.

The general government’s revenue as a percentage of the GDP is expected to decline to 39.6% this year from 40.2% in 2014 before falling to 39.1% in 2016, the IMF said. Government expenditure, also as a percentage of the GDP, is expected to rise to 40.9% in 2015 from 40.4% last year before it falls to 38.9% next year.

Source: Cyprus Mail