Central Bank of Cyprus: Economy to grow by 2.6% this year

NICOSIA, Cyprus (AP) — The governor of the Central Bank of Cyprus says the island nation’s economy is expected to grow by 2.6% this year, a full three points lower than in 2022. Constantinos Herodotou said at an economic forum on Tuesday that the forecast still compares well with the average growth of 1% expected in other countries that use the euro. Herodotou attributed the situation in Cyprus primarily to a decreased demand for loans because of high interest rates, as well as declines in personal consumption and investments. He says growth is expected to rebound to 3.1% annually in 2024 and 2025 thanks to improved domestic demand, exports and tourism revenue.