## Cyprus: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus

_IMF Staff Country Reports, May 28, 2024_

## Source details

**Canonical URL:** [Cyprus: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus](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)

## Other formats

- [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)
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## Bibliographic details
- Published: May 28, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400276408.002

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### Recent performance and growth drivers
- 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,
  - fading post-pandemic base effects.
- Despite moderation, growth has remained above the euro area average, supported by:
  - a continued recovery in tourism,
  - expanding financial services and information and communication technology activity,
  - strong investments.
- Growth is expected to stabilize in 2024 and rise to 3 percent in the medium term.

### Labor market and inflation
- Labor markets are tight, with unemployment at a near two-decade low.
- Headline inflation dipped below 2 percent, but core inflation has been more persistent.

### Fiscal developments and public debt
- 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.

### Structural reforms and policy recommendations
- Further judicial and labor market reforms are necessary to:
  - streamline the business environment,
  - reduce skill mismatches.
- These reforms will support the ongoing diversification of Cyprus’ growth model.

### Thematic coverage and subjects
- Anti-money laundering and combating the financing of terrorism (AML/CFT)
- Crime
- Financial institutions
- International organization
- Labor
- Labor markets
- Monetary policy
- Nonperforming loans
- Public debt

*Source: Cyprus: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus, May 28, 2024.*

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## Content in this bundle

- **1cypea2024001**
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_Source: 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_