Cyprus: 2025 Article IV Consultation-Press Release; and Staff Report

Author: International Monetary Fund. European Dept.

Volume/Issue: Volume 2025 Issue 117

Publication date: June 2025

ISBN: 9798229012843

$20.00

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Topics covered in this book

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Finance , Labor , Economics- Macroeconomics , Public Finance , EFF arrangement , PPM-eligibility threshold , EFF credit , PPM discussion , fund's PPM , headline inflation , Nonperforming loans , Labor markets , Fiscal stance , Global , Europe

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Summary

Robust growth last year was driven by strong tourism, ICT sector expansion, and domestic consumption. And inflation decelerated despite some volatility. Activity is expected to moderate this year as consumption growth eases and exports are hit by rising trade tensions. Looking ahead, capital accumulation will become increasingly important for sustaining long-term growth, particularly as the contribution from labor begins to diminish.