Fiscal Council of Cyprus Chairman Michalis Persianis has noted that we are in a period in which macroeconomic and fiscal data continue not only to flourish but also remain at a steady trend of containment.
In his remarks in the Council's Activity Report for 2024, Persianis adds that growth is expected to remain at around 3% and is based on a broad base, with almost all sectors strengthening their activities, while the debt trajectory is outside the risk zone and the downward trend continues, with the goal of reaching levels below 60% of GDP in 2025.
Regarding state revenue, Persianis notes that it is recording continuous increase, to an extent that exceeds what is expected on the basis of inflation and growth, while employment remains high and inflation remains at zero.
Persianis states that while risks are accumulating, the external environment is also becoming increasingly unpredictable. In this context, he notes, Cyprus has two means to address the risks. First, to keep policy options open for when conditions require fiscal interventions and secondly to to actively prepare for those risks that are already visible.
Referring to climate change, he says that natural disasters, the need for water management and the increase in demand for electricity are already recording intensifying trends, while all models predict an acceleration of the phenomena.
“The inadequacy of infrastructure, with the most painful of them being water, public transport and energy infrastructure, are approaching the limit of crisis and are depriving the executive power of the required options. These will require serious increases in spending and the continued delay is of concern,” he notes.
(Source: CNA)
