Assessment of the Cypriot Economy: Positive Outlook with Challenges Ahead
December 24, 2024
The Fiscal Council's report for 2024 presents a positive outlook for the Cypriot economy, though with structural weaknesses that need attention. The economy shows continuous fiscal surpluses, reduced public debt, and broad-based growth. However, concerns arise from rising inelastic expenditures and political pressures for increasing state spending. A new development strategy is necessary as the relationship with the broader European economy remains challenged by low growth rates.