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Cypus Finance Ministry revises estimate for macroeconomic developments

02 April, 2014

Cyprus Finance Ministry said the country`s fiscal deficit was expected to rise to 5.8% of GDP in 2014 compared to 5.4% the year before.

In accordance with the latest macroeconomic scenario, published by the Ministry, on Wednesday, Cyprus` primary balance is estimated to remain at last years’ level as a percent to GDP at about -1.8%.

Debt to GDP ratio is anticipated to peak in 2014 rising to 122% from 111.5% the year before attributed among other to “a high primary deficit and the snow ball effect”.

The estimated over performance from the initial target of 2013 is about 2 ½ p.p. of GDP, which was translated into tightening the target for 2014 from a primary deficit of 4.1% of GDP (April 2013) to 1.8% (April 2014).