Cyprus to generate fiscal surpluses until 2023, IMF says

Cyprus will generate fiscal surpluses until 2023 according to the IMF’s fiscal Monitor issued today.

Building to strong growth rates, Cyprus will generate fiscal surpluses in the region of 2.0% of GDP for the next three years.

The IMF estimates that Cyprus will record growth rates of 4% � 4.25% for the next two years while GDP growth is projected to ease to 2.5%.

According the IMF, Cyprus’ general government surplus ranging from 2.0% of GDP for 2018 and 2019 and is estimated to ease to 1.8% in the following two years. Cyprus’ budget surplus will further decline to 1.6% in 2022 and reach 1.7% of GDP in 2023.

Furthermore, Cyprus will generate strong primary surpluses (excluding debt servicing spending) namely above 4% in the next three years easing to 3.7% in 2023.

According to IMF figures, Cyprus’ public debt declined below the 100% of GDP mark in 2017 and will decline further to 97 this year. However, the Fund did not factor in the issuance of government bonds to the state-owned Cyprus Cooperative Bank amounting to Euros 2.35 billion which pushed the island’s public debt to 110% of GDP. In early April the government stepped in to allay the concerns generated by the tender process launched the CCB to attract private investors.

IMF estimated that Cyprus public debt will decline to 67.6% of GDP by 2023.

% of GDP

2018

2019

2020

2021

2022

2023

General government balance

2,0

2,0

1,8

1,8

1,6

1,7

Gen. government primary balance

4,2

4,2

4,0

3,9

3,7

3,7

Cyclically adjusted balance

2,2

1,9

1,6

1,4

1,2

1,7

General government Gross Debt

97,0

89,5

83,0

78,8

73,1

67,6

General government revenues

40,3

40,5

40,4

40,4

40,3

40,3

General government expenditure

38,3

38,4

38,5

38,5

38,6

38,6

Source: Cyprus News Agency