Cyprus growth forecast revised upward

The Central Bank of Cyprus has revised its 2024 forecast for gross domestic product growth to 3%, from 2.8% that was expected last March, mainly due to the upward revision of domestic demand, while it maintained its forecast for growth in the years 2025 and 2026, at 3.1% and 3.2%, respectively.

According to the CBC's macroeconomic forecasts (June 2024), for the Cypriot economy for the years 2024-2026, the GDP revision for 2024 is conservative, taking into account the strong economic results of the first quarter of this year, adding that at the same time, it reflects the economic uncertainty due to the fragile external environment.

In relation to the March 2024 forecasts, the CBC revised slightly downward the unemployment rate in 2024 by 0.1 percentage points to 5.7%, maintaining its forecasts for the years 2025 and 2026, while upgrading its forecasts for harmonized...