Cyprus economic growth forecasts remain strong according to IMF

The International Monetary Fund (IMF) has released its October 2026 World Economic Outlook, providing positive growth forecasts for the Cypriot economy. Cypriot Finance Minister Makis Keravnos noted that these projections align with other international and European organizations, highlighting the resilience of the nation's economy despite global uncertainties and regional conflicts.

The IMF projects Cyprus's economic growth rate for 2026 at 2.9%, a slight decrease from its previous 3% estimate due to the impact of ongoing conflicts. However, the Fund upgraded its growth forecast for 2027 to 3.2%, up from an earlier estimate of 3%.

Regarding inflation, the IMF expects rates to reach 3.7% in 2026, largely driven by the energy crisis, before dropping to 1.9% in 2027. The Ministry of Finance maintains a slightly higher growth forecast of 3.1% for 2026, supported by recent data from the Statistical Service.