IMF: Cyprus economic recovery gradually decelerating but remains strong

The IMF said on Tuesday that economic growth in Cyprus is gradually decelerating but remains strong, buoyed by the services and construction sectors which are partly financed with foreign direct investment.
Following the third post-program monitoring discussions with Cyprus the International Monetary Fund indicated that while employment is picking up, wage pressures and inflation remain low.
According to a press release, a large fiscal surplus is helping Cyprus lower public debt after a sizable one-off increase related to the sale of Cyprus Cooperative Bank (CCB) last year.
"The removal of CCB's non-performing loans (NPLs) and securitization of a large NPL portfolio has led to a sharp reduction in NPLs, earning Cyprus a sovereign rating upgrade back to investment grade status."
Nevertheless, the IMF notes, NPLs are still among the highest in the EU, public and...