HB: Positive Growth Dynamics Continue
Hellenic Bank assesses that Cyprus' macroeconomic outlook is positive and is accompanied by a significant increase in real gross domestic product during 2018, robust employment growth and further improvement in key domestic indicators. Growth is expected to be supported by private consumption and investment and by an improving and robust labour market. Public expenditure is also expected to contribute positively to growth through higher investment expenditures. According to the baseline macroeconomic scenario of Hellenic Bank’s Economic Research Department, growth is expected to be 3,4% in 2019 and 3,2% in 2020. The pick-up in domestic demand is expected to be reflected in improved labor market conditions with unemployment decreasing to 6,6% in 2019. Inflation in 2019 is expected to remain at relatively low levels, at around 1,0%.