IMF: Cyprus’s “Nimble, Dynamic” Economy Expected to Grow 2.5% This Year

The International Monetary Fund (IMF) has described Cyprus as having a “nimble and dynamic” economy, projecting growth of approximately 2.5% in 2025, while recommending that the country maintain fiscal discipline to safeguard its progress.

Alex Pienkowski, IMF mission chief to Cyprus, stated:

“Cyprus has demonstrated impressive resilience to successive shocks.”

In 2024, Cyprus achieved 3.4% growth, ranking among the highest in the euro area, driven by steady foreign investment inflows and strong tourism arrivals.
The IMF expects growth to adjust to around 2.5% this year and stabilize at around 3% in the medium term.

To strengthen its recovery, the IMF advises Cyprus to continue reducing public debt and managing public sector spending prudently, especially as inflationary pressures remain above 2%.

While the IMF noted that the global environment could present challenges, it emphasized that Cyprus, with its solidified economic foundations, is well positioned to adapt and sustain stable growth in the coming years.