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IMF expects Cyprus' public debt to grow in 2017

IMF expects Cyprus' public debt to grow in 2017
International Monetary Fund (IMF) expects Cyprus` public debt to grow to 109.3% of GDP in 2017 compared to 108% in 2016, according to its Fiscal Monitor for April 2017 issued Wednesday.

According to IMF projections, Cyprus` General Government gross debt is not expected to fall below 100% before 2020, adopting a more conservative approach in relation to October 2016 when IMF projected that Cyprus` debt would have fallen to 97.9% in 2019.

IMF considers that the ratio of government debt to GDP in Cyprus was at 108% in 2016, and will increase to 109.3% in 2017. Thereafter will decrease to 107.4% in 2018, to 100.5% in 2019, to 95% in 2020, to 91.6% in 2021 and to 86.7% in 2022.

The primary balance of the general government that according to IMF was 2.3% of GDP in 2016 (compared with 2% envisaged last October) is expected to fall slightly to 2.2% in 2017 and 2018. The primary balance is projected to grow to 2.5% in 2019 and to 2.6% in 2020-2022.

General Government overall balance, which recorded a deficit 0.3% of GDP in 2016 according to IMF, is expected to remain at the same level in 2017. The deficit is expected to increase to 0,5% in 2018 and reduce to 0,1% in April 2019. From 2020 until 2022, IMF projects a surplus of 0,1%

Revenues of the General Government, amounting to 38.7% of GDP in 2016 is expected to gradually reduced to 37.9% in 2017 and to 37.6 % by 2022.

Expenditure of General Government amounting to 39% of GDP in 2016, is expected to reduce to 38.2% in 2017-2018, to 38.1% in 2019, to 37.7% and to 37.5% by 2022./IBNA

Source: Cyprus News Agency

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