(photo Valuewalk.com)

 

The Cypriot economy will register subdued growth in 2015 and will further pick up pace in 2016, as the island will exit from its three-year financial adjustment programme, the International Monetary Fund (IMF) said in the October World Economic Outlook (WEO) issued on Tuesday 7th.

According to the WEO, the Cypriot economy will expand by 0.5% in 2015 compared with 0.4% in the WEO of October 2014, whereas the economy will grow by 1.4% in 2016, adopting the projections of Cyprus` lenders.The IMF estimates that unemployment in 2015 will reach 16% and will further decline to 15% in 2016.

In the October 2014 WEO, unemployment was projected to 16.1% in 2015.

Deflationist pressures will continue in 2015 with Consumer Prices dropping to -1.0% in 2015, compared with 0.7% in the October 2014 WEO, whereas in 2016 inflation will reach 0.9%.