European Commission positive forecasts for Cyprus economic growth

European Commission positive forecasts for Cyprus economic growth

The European Commission’s summer forecasts for Cyprus economic growth predict a recovery in the Cyprus economy with a growth rate of over 4% in 2021. This statement was made by the Ministry of Finance of Cyprus, commenting on the economic forecasts of the Commission, published earlier.

The EU Commission said that Cyprus’ GDP is estimated to grow by 4.3% in 2021, boosting the growth rate to 3.1%. The Cyprus Ministry of Finance has updated its forecast, estimating a growth rate of over 4% by 2021.

This estimate is higher than the previous estimate of 3.1% growth rate due to better-than-expected results in the third quarter and a significant improvement in the economic climate in June, the ministry said.

The accelerated pace of COVID-19 vaccinations in Cyprus, as well as in the rest of the EU, has resulted in a significant relaxation of domestic and travel restrictions, setting the stage for growth in the coming months, according to the Ministry.

In 2022, economic growth is estimated to reach 3.8% of GDP in line with previous forecasts, thanks to favorable outlook for domestic and external demand and the implementation of the National Recovery and Resilience Plan. The plan is expected to lead to increased public and private investment, the Finance Ministry added.

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