{
  "title": "Cyprus: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus",
  "publication": "IMF Staff Country Reports, May 28, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2024/05/28/cyprus-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-549494",
  "canonical": "https://www.imf.org/en/publications/cr/issues/2024/05/28/cyprus-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-549494",
  "overlayPath": "/en/publications/cr/issues/2024/05/28/cyprus-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-549494/index.md",
  "summary": "The 2024 Article IV Consultation discusses that Cyprus recovered swiftly from the pandemic and has proven resilient to multiple adverse shocks. Growth moderated in 2023 with slowing consumption growth, lower services exports to Russia, and fading post-pandemic base effects.",
  "sections": [
    {
      "heading": "Recent performance and growth drivers",
      "content": "- Cyprus recovered swiftly from the pandemic and has proven resilient to multiple adverse shocks.\n- Growth moderated in 2023 with:\n  - slowing consumption growth,\n  - lower services exports to Russia,\n  - fading post-pandemic base effects.\n- Despite moderation, growth has remained above the euro area average, supported by:\n  - a continued recovery in tourism,\n  - expanding financial services and information and communication technology activity,\n  - strong investments.\n- Growth is expected to stabilize in 2024 and rise to 3 percent in the medium term."
    },
    {
      "heading": "Labor market and inflation",
      "content": "- Labor markets are tight, with unemployment at a near two-decade low.\n- Headline inflation dipped below 2 percent, but core inflation has been more persistent."
    },
    {
      "heading": "Fiscal developments and public debt",
      "content": "- Driven by robust revenue growth, the primary surplus increased further in 2023.\n- The increase in the primary surplus contributed to a large decline in public debt.\n- The authorities’ planned neutral fiscal stance in 2024 is appropriate.\n- Recommendation: Further primary surpluses should be maintained until debt falls comfortably below 60 percent of gross domestic product."
    },
    {
      "heading": "Structural reforms and policy recommendations",
      "content": "- Further judicial and labor market reforms are necessary to:\n  - streamline the business environment,\n  - reduce skill mismatches.\n- These reforms will support the ongoing diversification of Cyprus’ growth model."
    },
    {
      "heading": "Thematic coverage and subjects",
      "content": "- Anti-money laundering and combating the financing of terrorism (AML/CFT)\n- Crime\n- Financial institutions\n- International organization\n- Labor\n- Labor markets\n- Monetary policy\n- Nonperforming loans\n- Public debt\n\nSource: Cyprus: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus, May 28, 2024.\n\n---\n\n Content in this bundle\n\n- 1cypea2024001\n  - 1cypea2024001 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1cypea2024001 (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/cr/issues/2024/05/28/cyprus-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-549494/index.md)",
    "[Structured JSON version](/en/publications/cr/issues/2024/05/28/cyprus-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-549494/index.json)",
    "[Bundle manifest](/en/publications/cr/issues/2024/05/28/cyprus-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-549494/bundle-manifest.json)",
    "Published: May 28, 2024",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400276408.002",
    "Cyprus recovered swiftly from the pandemic and has proven resilient to multiple adverse shocks.",
    "Growth moderated in 2023 with:",
    "Despite moderation, growth has remained above the euro area average, supported by:",
    "Growth is expected to stabilize in 2024 and rise to 3 percent in the medium term.",
    "Headline inflation dipped below 2 percent, but core inflation has been more persistent.",
    "Driven by robust revenue growth, the primary surplus increased further in 2023.",
    "The increase in the primary surplus contributed to a large decline in public debt.",
    "The authorities’ planned neutral fiscal stance in 2024 is appropriate.",
    "Recommendation: Further primary surpluses should be maintained until debt falls comfortably below 60 percent of gross domestic product.",
    "Further judicial and labor market reforms are necessary to:",
    "These reforms will support the ongoing diversification of Cyprus’ growth model.",
    "**1cypea2024001**"
  ],
  "related": [
    {
      "title": "1cypea2024001",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/cr/2024/english/1cypea2024001.pdf",
      "summary": {
        "path": "/-/media/files/publications/cr/2024/english/1cypea2024001.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/cr/2024/english/1cypea2024001.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/cr/issues/2024/05/28/cyprus-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-549494/index.md",
    "json": "/en/publications/cr/issues/2024/05/28/cyprus-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-549494/index.json",
    "bundleManifest": "/en/publications/cr/issues/2024/05/28/cyprus-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-549494/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-11T13:11:38.594Z"
}