## Cyprus: Staff Report for the 2002 Article IV Consultation

_IMF Staff Country Reports, February 14, 2003_

## Source details

**Canonical URL:** [Cyprus: Staff Report for the 2002 Article IV Consultation](https://www.imf.org/en/publications/cr/issues/2016/12/30/cyprus-staff-report-for-the-2002-article-iv-consultation-16335)

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## Bibliographic details
- Published: February 14, 2003
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451809817.002

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### Executive summary and headline findings
- After four years of strong growth, economic activity in Cyprus has tailed off since late 2001, affected by the global economic slowdown.
- The authorities estimate growth for 2002 to have declined to 2.3 percent.
- Inflation has risen to 2.9 percent year-over-year in December on account of indirect tax increases, but core inflation remains low.
- The current account deficit is expected to have deteriorated in 2002 to 5.5 percent, on account of lower tourism receipts and temporary factors.

### Macro outlook and drivers
- Growth: Estimate for 2002 is 2.3 percent, reflecting weaker tourism and declining consumer and business confidence following several years of strong expansion.
- Demand shocks: Falling tourist arrivals and weakening consumer and business confidence are cited as principal near-term constraining factors.
- External environment: The global economic slowdown is identified as a key influence on domestic activity.

### Prices and inflation
- Headline inflation: 2.9 percent year-over-year in December, attributed to indirect tax increases.
- Core inflation: Described as remaining low (no numeric value provided in the source text).

### External sector
- Current account: Expected deterioration in 2002 to 5.5 percent, attributed to lower tourism receipts and temporary factors.

### Coverage and thematic areas addressed in the report
- Banking
- Exchange rates
- External debt
- Financial regulation and supervision
- Fiscal consolidation
- Fiscal policy
- Foreign exchange
- Public debt

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/30/cyprus-staff-report-for-the-2002-article-iv-consultation-16335_