IMF projects ”modest growth” for Cyprus in 2011

The International Monetary Fund said on Monday that the Cypriot economy will return to ''modest growth'' in 2011, warning however that without ''strong action'' on the government wage bill Cyprus' objective for the reduction of the fiscal deficit to 3% by 2013 will not be achieved.

The IMF delegation completed its contacts on the island and will prepare a staff report which is expected to be finalised on the coming October.

According to a report given to the press on the completion of the IFM visit, economic conditions have started to stabilize after the economic downturn and the Cypriot economy is poised to return to modest growth in 2011.