IMF cuts Cyprus 2026 growth forecast to 2.9 per cent, differing from finance ministry

The IMF lowered its forecast for Cyprus' economic growth in 2026 to 2.9 per cent from 3 per cent, while raising its 2027 projection to 3.2 per cent from 3 per cent, in its latest World Economic Outlook published on Tuesday. The fund expects inflation in Cyprus to reach 3.7 per cent in 2026 before falling to 1.9 per cent in 2027, above its April 2026 estimates of 2.6 per cent and 1.6 per cent. Unemployment is projected at 4 per cent in 2026 and 4.4 per cent in 2027. The projections differ from the finance ministry's draft 2027 state budget, presented to parliament by Finance Minister Makis Keravnos on October 12, which forecasts growth of 3.1 per cent in 2026 and 2.9 per cent in 2027.