Improved situation: Cyprus recession shallower than expected

EU, European Central Bank, IMF says Cyprus continued to meet its targets under an austerity plan.

NICOSIA: The recession in Cyprus looks set to be shallower this year than expected, but recovery will also be slower than anticipated, according to the country’s international lenders. At the same time, the European Commission, European Central Bank and International Monetary Fund, or the troika, said Cyprus continued to meet its targets under an austerity plan adopted in exchange for their €10 billion ($13.7 billion) bailout in March 2013. “While the recession this year is expected to be somewhat less severe than anticipated, the outlook remains challenging,” a joint statement said after a team of experts from the troika completed its fourth review of the economy since the bailout. The troika now forecasts a contraction of only 4.2% in GDP this year, compared with a projection of 4.8% made in February.

Published in The Express Tribune, May 18^th, 2014.

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