European Commission sees economic growth staying strong
Cyprus’ economic growth is expected to remain strong, driven by domestic demand, but downside risks are on the rise, according to the European Commission’s Spring Economic Forecasts, which were released on Tuesday.
According to the forecast for the Cypriot economy, GDP will continue to grow at 3.9 per cent in 2018, 3.1 per cent in 2019, and 2.7 per cent in 2020. Unemployment will drop from 8.4 per cent last year to 6.7 per cent in 2019 and 5.9 per cent in 2020.
The Commission warned against negative risks to the financial perspectives related to “uncertainties about the macroeconomic outlook, the effects of court decisions on past measures on public sector wages, and the potential shortage of public healthcare providers first years of the national health insurance scheme”.
Cyprus’ economic expansion is set to remain robust, driven by domestic demand, but risks are tilted to the downside.