CYPRUS: IMF lowers forecast for Cypriot economy due to global slowdown

The International Monetary Fund downgraded its projections for the Cyprus economy as part of the slowdown of the global economy due to subdued trade and softer industrial production.

In its World Economic Outlook (WEO), the IMF said Cypriot GDP will expand by 3.1% compared with 3.5% of GDP in its April edition, while in 2020 the economy is expected to slow at 2.9% growth compared with 3.3% in its previous estimate.

Unemployment is projected to reach 8% compared with 7% in the previous estimate and decline to 6% in 2020, the IMF said.

Inflation will remain subdued at 0.8% this year but accelerate to 1.6% in 2020.

Cyprus’ current account will reach a deficit of 7.8% in 2019 and is estimated to decline to 7.5% in 2020.

Euro Area growth rate is estimated to decelerate to 1.2% and reach 1.5% in 2020.

According to the IMF, the British economy will expand at a rate of 1.2% and 1.4% in 2019 and 2020 respectively, the US economy is projected to grow by 2.4% of GDP and 2.2% in 2020.