Despite the war in Ukraine and the subsequent international sanctions imposed on Russia, the Central Bank of Cyprus sees no recession hitting the Mediterranean island this year, apart from the rising inflation which is already affecting consumers.
This is what Philenews reported on Friday, adding that Cyprus will start feeling the real pain of the Russian invasion within 2023 when the Mediterranean island’s growth rate is expected to slow down.
In fact, the CBC, which has just released the Cypriot economy’s primary macroeconomic figures for the years 2022-2024, recorded a significant growth of 6% during the first half of 2022.
Based on the current CBC forecast, the Cypriot economy will not enter a period of recession in 2023, as expected in other eurozone countries. Nonetheless, the holiday island’s growth rate is slowing down.
Because, the CBC noted, the downward revision of the outlook for the external environment, which is also the result of the disturbance in international energy markets, has adversely affected the consumer and business climate.
As a result, euro area economies are expected to remain stagnant later in the third quarter of the year, as well as during the first quarter of 2023. This will, in turn, impact Cyprus’ domestic market.
Source: In-Cyprus
