According to the Ministry of Finance, Cyprus’ economy shrank by 5.5 percent in 2013 which is less than expected, probably due to the resilience of private consumption and the turnover from tourism.
The Cypriot government, which has received 10 billion Euros of support from the European Commission and the IMF to avoid a default, had previously estimated a 7.7 percent decrease in Gross Domestic Product for 2013, already slightly down on a previous estimate of 8.7 percent, as defined in the countries’ EU and IMF economic adjustment program.
A document issued by the Finance Ministry of Cyprus, dated January 22, said that the Cypriot economy still faces challenges despite these positive results. The IMF also warned that Cyprus’ efforts to recover from the crisis will weigh on output for the next decade.
Cyprus closed one of its major banks and dipped into some accounts in a second in order to recapitalize the system, leading to the frustration of many of its citizens and those who had deposited money.
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