FAMAGUSTA GAZETTE – The Cypriot Ministry of Finance welcomed the International Monetary Fund’s (IMF) observations and recommendations following the conclusion of its mission to Cyprus.
In a statement, the ministry praised the resilience of the Cypriot economy amid successive shocks, noting that fiscal indicators remain strong and on track.
The ministry agreed with the IMF’s recommendation to focus fiscal policy on reducing public debt while avoiding fiscal relaxation.
This aligns with the trajectory set under the new European Economic Governance Framework, which emphasizes the importance of controlling net primary expenditures.
Additionally, the ministry highlighted its commitment to monitoring the real estate sector due to its significant impact on macroeconomic stability. It also emphasized ongoing judicial reforms aimed at enhancing efficiency and productivity, which are expected to support economic growth and investment.
The IMF’s assessment acknowledged Cyprus’ robust economic growth, driven by foreign investment, tourism, and the ICT sector. However, it cautioned against signs of moderate overheating and emphasized the need for vigilance in managing inflation and labor market pressures.
The ministry reaffirmed its dedication to meeting obligations under the national energy and climate plan, pledging to uphold commitments that address environmental and energy challenges. These efforts reflect the government’s focus on sustainable development and fiscal discipline.