Cyprus: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus

International Monetary Fund

No 2026/145, IMF Staff Country Reports from International Monetary Fund

Abstract: 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.

Pages: 82
Date: 2026-06-23
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