The government will continue providing solutions with targeted interventions in order to successfully address one more crisis, Government Spokesperson Marios Pelekanos said on Thursday referring to the current economic crisis and the press release issued on Wednesday by the International Monetary Fund.
According to the Presidency, in statements to the press, the Government Spokesperson referred to the press release of the International Monetary Fund on Cyprus and said that the IMF notes that Cyprus recorded a strong recovery last year due to the successful management of the pandemic, while GDP returned to pre-pandemic levels and unemployment recorded further decrease.
The IMF, he said, also notes the reduction of the public debt to 104% at the end of 2021, the high liquidity of the banking sector and the stable capital ratios, as well as the progress that has been made regarding the non-performing loans.
“Despite the challenges for the economies around the world including our economy, due to the rise in inflation, as a result of the war in Ukraine, it is predicted that Cyprus will record positive growth rates of 2% this year, maintaining the consistently positive course that has been recorded in recent years,” the Spokesperson stressed.
Pelekanos noted that the IMF also warns that in order to achieve a positive growth rate for 2022, the effort must be supported by investment expenditure included in the “Cyprus – Tomorrow” Plan, which in combination with structural reforms improves the medium-term growth prospects, something that will require constructive cooperation between the executive and legislative powers and social partners.
In addition, he said that the IMF welcomed the progress achieved in implementing the Recovery and Resilience Plan, including passing legislation on corruption and on civil service and local government reforms while noting that reforms of the judicial system are also a priority.
The Spokesperson said that the IMF warns of the problems that Cyprus is called to face from the uncertainty and the danger created by a possible escalation and prolonged duration of the war and sanctions, inflation and possible new uncontrollable outbreaks of COVID-19.
“The government will continue to take the IMF’s reports and recommendations seriously, such as the need to address the challenges for the implementation of the green agenda, including the planned green tax reform, a need, which was one of the government’s priorities during the preparation of the National Plan ‘Cyprus – Tomorrow'”, Pelekanos noted.
Concluding, he said that the government will continue until the last day of its term to govern by providing solutions with targeted interventions, to address this crisis with the same success as the previous crises of 2013 and the pandemic, without jeopardizing the steady course of the country in order to make political gains.
Source: Cyprus News Agency