Cyprus: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus
Cyprus: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus
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Volume/Issue:
Volume 2026
Issue 145
Publication date: June 2026
ISBN: 9798229050845
$20.00
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Banks and Banking , Inflation , Labor , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , Credit , Labor markets , Inflation , Commercial banks
Summary
Recent Developments and Outlook: Growth remained strong in 2025, supported by robust domestic demand and services exports. Inflation fell last year, reflecting favorable supply-side developments. But following the war in the Middle East, inflation has rebounded on higher energy prices; activity is expected to moderate. Since labor market tightness limits further gains from employment, sustaining longer-term growth will depend on investment and productivity enhancing reforms—especially improving judicial efficiency, strengthening skills and digital/AI readiness, and advancing energysector reforms and infrastructure.
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