Government pledges continuation of policies for strong and resilient economy

The government will continue to implement policies that put the economy on a growth path, safeguarding its strength and resilience, Government Spokesperson Konstantinos Letymbiotis has noted, pointing out that  Cyprus is among the three countries in the Eurozone with the highest growth rate in 2024.

Speaking on 16 May, he added that forecasts show the positive course of the economy and the increase in economic activity at a strong rate in 2024.

Commenting on the European Commission’s spring forecast published on 15 May, he said that Cyprus' growth rate is higher by around 2.0 points in 2024, which confirms the resilience and flexibility of the economy while inflation is expected to continue its downward trend towards the 2% target, in an environment of de-escalation of inflationary pressures.

The Spokesperson also said that the labour market remains resilient while the fiscal balance remains in surplus with public debt falling rapidly. For 2024 and 2025, economic growth is forecast to strengthen, as well as employment is expected to continue to grow at a relatively steady pace.

According to the Spokesperson, unemployment is predicted to remain on a downward trajectory and be limited to 5.6% in 2024 and 5.4% in 2025.

He referred to the preliminary assessment of the Cyprus Statistical Service published on Wednesday, which notes that the rate growth of the economy for the 1st quarter of 2024 is estimated at 3.3% compared to the corresponding quarter of 2023 and at 1.2% compared to the 4th quarter of 2023.

Moreover, according to corresponding figures from Eurostat, the growth rate of Cyprus for the 1st quarter of 2024 is the highest among the member states and much higher than the average of the Eurozone and the EU.

He said that the government has proven in the last 14 months since it assumed office that "it implements an ambitious governance programme,  through a responsible economic policy that will further modernise the state and create progress prospects for all our citizens."

Asked if the government will announce a new package of support measures for the citizens the Spokesperson said that the government has taken and continues to take measures in line with the positive trajectory of the economy and taking into account all fiscal data.

He added that all measures are constantly being evaluated and that the latest package of support measures is in force until the end of June. Letymbiotis said that developments are assessed and if there is a need for the government to intervene it will do so with targeted measures and policies where necessary.

(Source: CNA)