Cyprus continues its economic stride with the IMF refining state salaries and Kedipes’ €60 million debt repayment. Industrial growth and Cypriot innovators at Eurosatory 2024 further boost confidence, while the Cyprus Stock Exchange reports incremental gains.
Cyprus is considering state salary reforms to address disparities between public and private sectors, including reducing state salaries and abolishing the Cost of Living Allowance, following IMF consultations. These reforms aim to align wages with productivity levels and ensure economic sustainability.
The Cypriot economy is thriving, boasting a 2.5 percent growth rate in 2023 and a promising forecast of 2.5 to 3 percent, outpacing the eurozone average. Challenges include reliance on real estate and the need for structural reforms, while opportunities for growth lie in climate action and digital transformation.
Cyprus’s economy faces key challenges despite recent successes. The IMF advises the country to gradually eliminate subsidies, make strategic labor market reforms, and enhance the business environment for sustainable growth and resilience.
Cyprus’ economic resilience shines as the IMF predicts a speedier decline in public debt, reaching the 60 percent threshold by 2026 a year ahead of schedule. Strong indicators such as a healthy primary surplus and rising GDP contribute to Cyprus’ fiscal strength amid global uncertainties.
