EU Predicts Rosy Outlook for Cyprus Economy This Year



The Gross Domestic Product (GDP) of the island nation of Cyprus is expected to grow by 3.3 percent in 2019, the European Commission said on Thursday. The commission predicted this rosy outlook on the basis of new data which forecasts the growth prospects of every country within the European Union.

According to this interim economic forecast, the economy of the island grew by 3.8 percent in 2018; it is expected to grow by 3.3 percent in 2019 and 2.7 percent in the year 2020.

Meanwhile inflation was at 0.8 percent during 2018, and is expected to be 0.7 per cent for this year and 1.2 per cent for 2020.

Growth is projected to slow down in 2019 and 2020, mainly due to the less favorable external economic climate rather than Cyprus’ own economic conditions.

“Slowing growth in the Eurozone and persistent uncertainties in major trading partners weigh on Cyprus’ outlook and increase downside risks,” the European Commission warned.

Malta is expected to be the EU state seeing the largest economic improvement, with its growth rate pegged at 5.2 per cent. Italy occupies the last place on the economic ladder, with its economy projected to grow by only 0.2 percent.

With information from CNA