Cyprus’ economic growth in 2023 is expected to fall, Ukraine conflict blamed

(File: Famagusta Gazette)

NICOSIA – As a result of the negative influence of the continuing Ukraine conflict, Cyprus’ economic growth in 2023 is expected to fall to 2.5 percent, said the Central Bank of Cyprus (CBC) has said.

But it is projected to bounce back in 2024 and 2025 by 3.1 percent each year, said CBC in its end-of-year economic report.

The economy will register a growth of 5.8 percent this year, compared to 6.6 percent in 2021, predicted the CBC.

It added that the downward projections for the external economic environment, as a result of the upheaval in the international energy markets, have negatively influenced the consumption and business climate.

CBC said that inflation as measured by the Harmonized Consumer Price Index will reach 8.1 percent this year, compared to 2.3 percent in 2021.

However, inflation is expected to fall back to 3.3 percent in 2023, 1.7 percent in 2024 and 1.8 percent in 2025, in line with an expected downward trend in inflation in the European Union, CBC added.


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