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- Ελληνικά
Regarding reports that have been published today and present a negative picture regarding the outlook of the Cypriot economy, the actual picture is presented to restore the truth.
The Cypriot economy continues its upward trend, in line with the forecasts of the Ministry of Finance. Unlike other European countries, which are entering recession, Cyprus in the first half of the year recorded the second highest GDP growth rate in the Eurozone, after Spain. In addition, Cyprus recorded a marked decline in inflation in July to 2.4%, which is specifically the fourth lowest inflation in the Eurozone and is one of the few countries that maintains a fiscal surplus. According to the Fiscal Council's Interim Report, "The Cypriot economy continues to show considerable resilience despite the ongoing uncertainty, with growth expected to remain close to 2.5%."
The slowdown in the economy's growth rate was predictable, starting in Q1 2022. This was due to exogenous factors such as the impact of continuous interest rate hikes by the ECB, high prices on consumer goods, and also due to the impact on the services sector of the Cypriot economy from the implementation of sanctions against Russian entities. The slowdown in growth for 2023 has been foreseen and is reflected in the Ministry of Finance's projections, where growth is estimated to moderate slightly below the projected 2.8%.
In light of the above, the fiscal policy framework, as drafted and adopted, takes into account developments in the Cypriot economy, notably the projected slowdown. The budgetary outcomes in the first half of 2023, despite the slowdown in the economy, compare favourably with the outcomes in the corresponding period of 2022, provided that there is no deterioration in the fiscal position of the State. On the contrary, for all months without exception, the fiscal performance in 2023 is better than in 2022.
The resilience of the Cypriot economy, as presented above, and the sound fiscal and financial framework, provide a solid foundation for the implementation of the economic governance programme. The emergence of this programme and its planned implementation will prove to be important elements for the success of governance.
The Government is closely monitoring developments in the Cypriot economy and is vigilant to address any adverse developments that may arise that could lead to a deviation from our forecasts.
Statements and comments that are not accurate or that are based on fragmentary and selective approaches for the sake of expediency do not contribute in any way to correct information.
(NΓ)
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