The International Monetary Fund (IMF) has upgraded its forecast for Cyprus's growth rate in 2024 to 3.3%, up from the 2.7% it had projected last April.

According to the October World Economic Outlook (WEO) released on Tuesday, Cyprus's GDP growth is expected to be 3.3% for 2024 and 3.1% for 2025, compared to the 2.9% forecast made last April.

Cyprus is projected to have the third-highest growth rate in the Eurozone in 2024, following Malta (5%) and Croatia (3.4%).

Based on the estimate from Cyprus's Ministry of Finance, included in the state budget, the growth rate will reach 3.7% in 2024, while it is projected at 3.1% in 2025.

According to IMF data, inflation is expected to close at 2.2% in 2024 and 2% in 2025, compared to 2.3% and 2%, respectively, in previous forecasts.

The unemployment rate is expected to be 5.3% in 2024 and 5.1% in 2025, down from the 5.9% and 5.7% forecasted in April.

The IMF has more pessimistic forecasts for the current account deficit, projecting it to reach -10.1% in 2024 and -8.6% in 2025, compared to -8.6% and -8.5% forecasted last April. The estimate from Cyprus's Ministry of Finance is -8.5% for 2024 and -7.6% for 2025.

According to the IMF, global growth is expected to remain stable but sluggish, with forecasts of 3.2% for 2024 and 2025, with no significant changes from previous estimates. However, there have been notable revisions, including an upgrade for growth in the U.S. to 2.8% for 2024 and 2.2% for 2025, compared to 2.7% and 1.9% in the April forecasts.

A significant downgrade was also noted for major European countries such as Germany, with zero growth projected for 2024 and 0.8% growth in 2025, compared to 0.2% and 1.3% in April.

In emerging markets and developing economies, disruptions in production and shipping, especially in the oil sector, conflicts, and extreme weather conditions have worsened forecasts for the Middle East, Central Asia, and Sub-Saharan Africa. Meanwhile, forecasts for emerging Asia have improved due to demand for semiconductors and electronic goods, bolstered by investments in artificial intelligence.