IMF: Cyprus GDP growth 0.2% in 2015, 1.4% in 2016

IMF: Cyprus GDP growth 0.2% in 2015, 1.4% in 2016

The IMF World Economic Outlook for 2015, released on Tuesday, foresees a 0.2% growth for Cyprus` GDP in 2015 and 1.4% in 2016.

The report, which was presented by the IMF`s top adviser Olivier Blanchard, comes before the Spring Meetings of the World Bank Group and the International Monetary Fund, in Washington DC, which will take place between April 17-19.

It estimates that Cyprus` consumer price index will be negative at -1% in 2015 and will return to positive rates at 0.9% in 2016.

For 2015 the IMF predicts that the deficit in the country`s current account will remain at -1.9% (as a percentage of GDP) and will go down to -1.4% in 2016.

Finally, it estimates that unemployment will fall in 2015 to 15.9% (down from 16.2% in 2014) and a further percentage point in 2016 (14.9%).

For Greece, the IMF World Economic Outlook foresees a growth in the order of 2.5% in 2015 and 3.7% in 2016 and a slight negative percentage of -0.3% in both 2015 and 2016 for the consumer price index.

It further estimates that the current account as a percentage of GDP will be recorded at 1.5% in 2015 and 1.1% in 2016, while unemployment is predicted to fall to 24.8% in 2015 (down from 26.5% in 2014) and to 22.1% in 2016.

On the eurozone, the report foresees that growth will be around 1.5% in 2015 reflecting restriction in supply and demand. Inflation for the eurozone is predicted to remain at 0.1% in 2015, a percentage below the ECB`s long-term target.