The Government will continue until the last day of its term of office to play politics with seriousness and rationality, providing solutions with targeted interventions in order to successfully tackle this economic crisis, Government Spokesman Marios Pelekanos said today.
In a statement to the media, the Government Spokesman said that "the IMF, in a statement last Wednesday, noted that Cyprus recorded a strong recovery last year due to the successful management of the pandemic, while GDP returned to its pre-pandemic level and unemployment fell further.
It also notes the reduction of public debt to 104% by the end of 2021, the high liquidity of the banking sector and stable capital ratios, as well as the progress made on non-performing loans.
Despite the challenges faced by economies around the world, as well as our economy, due to the increase in inflation as a result of the war in Ukraine, Cyprus is expected to achieve positive growth rates of 2% this year, maintaining the consistently positive trend recorded in recent years.
At the same time, the IMF warns that for our country to achieve a positive growth rate for 2022, the effort will need to be supported by the investment spending included in the 'Cyprus - Tomorrow' plan, which, combined with structural reforms, improves the medium-term growth outlook. This will require constructive cooperation between the executive and the legislature, and social partners.
The IMF welcomes the progress made in implementing the Recovery and Resilience Plan, such as the enactment of anti-corruption legislation and the reform of the civil service and local government, and notes that the reform of the judiciary is also a priority.
At the same time, the IMF warns of the risks our country faces from uncertainty and the risks posed by a possible escalation and prolonged duration of war and sanctions, inflation, and possible new uncontrolled outbreaks of coronavirus.
The Government will continue to take IMF reports and recommendations seriously, such as the need to address challenges to the implementation of the green agenda, including the planned green tax reform. A need which was placed among the Government's priorities during the preparation of the National Plan 'Cyprus - Tomorrow'.
The Government will continue until the last day of its term of office to engage in serious and rational politics, providing solutions with targeted interventions in order to deal with this crisis with the same success as the previous crises of 2013 and the coronavirus pandemic were dealt with, without endangering the stable course of the country for political gains."
(PM/MB/SX)
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