IMF Staff Country Reports

Cyprus: Selected Issues

February 21, 2007

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International Monetary Fund. "Cyprus: Selected Issues", IMF Staff Country Reports 2007, 071 (2007), accessed May 13, 2025, https://doi.org/10.5089/9781451809893.002

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Summary

This Selected Issues paper explores the economic consequences of aging and its impact on long-term fiscal sustainability for Cyprus. The study analyzes the potential macroeconomic impact of different approaches to deal with the fiscal costs of aging. It goes beyond a simple quantification of the fiscal impact by explicitly examining the trade-offs of alternative policies within the context of a general equilibrium overlapping generation framework. It is concluded that addressing the fiscal consequences of aging will require increasing the retirement age to 65 years, followed by further increases to keep up with demographic trends.

Subject: Aging, Expenditure, Labor, Pension spending, Pensions, Population and demographics, Retirement, Wages

Keywords: Aging, CR, Global, ISCR, Labor force, Lump sum, Pension benefits, Pension spending, Pension system, Pensions, Present value, Private sector, Retirement, Wage earnings, Wage indexation, Wages

Publication Details

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