IMF revises estimates for Cyprus’ primary surplus upwards

The International Monetary Fund has revised upwards its forecast for Cyprus’ primary surplus for 2019 and for the next years, compared with its April forecast.
 
In its October 2019 Fiscal Monitor, the IMF also said that it expected a bigger reduction of public debt.
 
The Fund projects that the general government`s primary surplus will rise to 5.9% of GDP in 2019 from 4.1% it predicted in April’s Fiscal Monitor, and will fall to 4.7% in 2020. The IMF says that Cyprus’ primary surplus will remain over 4% until 2024, when it’s projected to reach 4.9%.
 
As a result, the Fund predicts that Cyprus` fiscal surplus will reach 3.6% of GDP in 2019, but will drop to 2.6% of GDP in 2020. For the years until 2024 the IMF expects the country’s fiscal surplus to stand at 2.8% in 2021, 2.7% in 2022, 2.9% in 2023 and 3.5% in 2024.
 
It also estimates that the public debt will decline to 96.1% of GDP in 2019 from 101% it predicted last April and that it will be further reduced to 89.4% in 2020, 85% in 2021 and 63.9% by the end of 2024.