According to the International Monetary Fund, Cyprus' real Gross Domestic Product growth is now expected to be 2.2% for 2023, down from the 2.5% projection made in April 2023. The IMF anticipates a growth rate of 2.7% in 2024, slightly lower than the 2.8% projected in the past April's World Economic Outlook.

Furthermore, the World Economic Outlook report published this October suggests that the growth rate for the fourth quarter of 2023 will be 1.8%. Inflation rates are projected to decrease to 3.5% for this year, down from the earlier 3.9% estimate, and further decline to 2.4% in 2024 (a slight revision from the 2.5% forecasted in April).

Unemployment in Cyprus is expected to reach 6.7% in 2023 (a revision from the earlier 6.5% estimate) and reduce to 6.4% in 2024, compared to the previously anticipated 6.2%.

As for the current account balance, there is an expected deficit of 8.6% in 2023, modified from the previous projection of -7.8%, and a decrease to 7.9% in 2024, adjusted from -7.2%.

In a broader perspective, the IMF predicts the Eurozone will experience growth rates of 0.7% and 1.2% for 2023 and 2024, respectively. The inflation rate in the region is expected to reduce to 5.6% in 2023 and 3.3% in 2024. Unemployment is forecasted at 6.6% for 2023, slightly rising to 6.5% in 2024.

Individual country forecasts include:

• Greece: The IMF anticipates a GDP growth of 2.5% (down from 2.6%) in 2023, and 2.0% in 2024 (an increase from the previously estimated 1.5%). Unemployment is projected to be 10.8% this year, reducing to 9.3% in 2024.

• Germany: A contraction of 0.5% is expected for 2023, followed by a growth of 0.9% in 2024.

• France: Forecasts suggest a 1% growth for the current year and a 1.3% increase in 2024.

• Italy: The GDP growth rate is anticipated to be steady at 0.7% for both 2023 and 2024.

• Croatia: Expected to record the highest growth rate in 2023 at 2.7%, slightly decreasing to 2.6% in 2024.

• Spain: Alongside Greece, Spain is projected to grow by 2.5% in 2023. For 2024, the Spanish economy is expected to grow by 1.7%.