Cyprus to see economy slow down
The Cypriot economy is expected to slow down toward the end of 2022 after growing steadily during the first half of the year, according to the chapter on Cyprus from the European Commission’s Fall 2022 Economic Forecast, which was presented on Friday by Commissioner for the Economy Paolo Gentiloni.
The country’s public finances are expected to remain sound, but an overall slowdown of the economy is expected due to the continuing effects of the Russian invasion of Ukraine and the increase in energy prices.
The predictions include reduced unemployment to 7.2% in 2022. Unemployment is expected to remain stable in 2023 and fall to 6.9% in 2024.
Inflation is projected to increase from 2.3% in 2021 to 8% in 2022, and ease to 4.2% in 2023 and 2.5% in 2024.
According to the report, real GDP increased by 6.3% in the first half of 2022, compared to the same period of 2021, driven mainly by domestic demand. Buoyant private consumption growth was supported by increased employment and savings accumulated during the pandemic. Investment has grown as a result of the Recovery and Resilience Plan’s implementation.
