IMF revises Cyprus economic outlook for 2026 and 2027

The International Monetary Fund (IMF) released its October 2026 World Economic Outlook, providing updated projections for the Cypriot economy. The report indicates a slight downward revision for real GDP growth, now estimated at 2.9% for 2026 compared to the 3% forecast issued in April. Conversely, the growth projection for 2027 has been revised upward to 3.2% from the previous 3% estimate.

Regarding inflation, the IMF forecasts a notable increase for the current year. The average annual inflation rate is now projected to reach 3.7%, a significant rise from the 2.6% expectation cited in April. Looking toward 2027, the IMF anticipates a decline in inflationary pressures to 1.9%, though this remains higher than the 1.6% figure previously estimated. These figures reflect a deceleration from the 3.8% growth rate observed in 2025, with expectations for economic acceleration to resume in 2027.