## Cyprus: 2025 Article IV Consultation-Press Release; and Staff Report

_IMF Staff Country Reports, June 2, 2025_

## Source details

**Canonical URL:** [Cyprus: 2025 Article IV Consultation-Press Release; and Staff Report](https://www.imf.org/en/publications/cr/issues/2025/06/02/cyprus-2025-article-iv-consultation-press-release-and-staff-report-567389)

## Other formats

- [Markdown version](/en/publications/cr/issues/2025/06/02/cyprus-2025-article-iv-consultation-press-release-and-staff-report-567389/index.md)
- [Structured JSON version](/en/publications/cr/issues/2025/06/02/cyprus-2025-article-iv-consultation-press-release-and-staff-report-567389/index.json)
- [Bundle manifest](/en/publications/cr/issues/2025/06/02/cyprus-2025-article-iv-consultation-press-release-and-staff-report-567389/bundle-manifest.json)

## Bibliographic details
- Published: June 2, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229012843.002

---

### Economic outlook and risks
- Growth is expected to decelerate to 2.5 percent in 2025 and stabilize at 3 percent in the medium term as Cyprus shifts toward more investment-driven growth.
- The immediate outlook presents downside risks, while longer-term risks appear more balanced.
- An escalation of trade conflicts—particularly if this broadened to include services trade and foreign direct investment—poses an important downside risk.

### Fiscal position and policy recommendations
- The fiscal surplus reached 4.3 percent of gross domestic product (GDP) in 2024.
- Public debt declined to 65 percent of GDP.
- Policy recommendations:
  - Fiscal policy should continue to prioritize debt reduction to further build buffers against potential shocks.
  - Given overheating risks, avoid new discretionary measures that would ease fiscal policy and add to inflationary pressures.

### Financial sector and macroprudential stance
- The banking sector boasts substantial capital and liquidity buffers, with financial risks appearing well contained.
- The recent tightening of the macroprudential policy stance will further enhance these financial buffers.

### Structural reforms and medium-term growth drivers
- Structural reforms aimed at enhancing judicial efficiency and boosting labor productivity are vital for fostering long-term growth.
- With employment levels already high, capital deepening will increasingly drive growth.

### Key statistics and facts highlighted
- Growth: "2.5 percent" in 2025; "3 percent" in the medium term.
- Fiscal surplus: "4.3 percent of gross domestic product (GDP)" in 2024.
- Public debt: "65 percent of GDP".
- Publication: "Cyprus: 2025 Article IV Consultation-Press Release; and Staff Report".

*Source: Cyprus: 2025 Article IV Consultation-Press Release; and Staff Report (IMF Staff Country Report 2025/117).*

---

## Content in this bundle

- **1. Real Sector**
  - [1. Real Sector (Markdown version)](/-/media/files/publications/cr/2025/english/1cypea2025001-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [1. Real Sector (PDF)](/-/media/files/publications/cr/2025/english/1cypea2025001-print-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2025/06/02/cyprus-2025-article-iv-consultation-press-release-and-staff-report-567389_