The recession is gradually losing momentum, but growth is forecast to resume only gradually in 2015 and 2016 as domestic demand slowly picks up, supported by lower energy prices. While the resilience in private consumption continued in 2014, investment, particularly in construction, continued its downward adjustment. Despite the fall in activity, the unemployment rate has stabilised. External demand is expected to be negatively affected by the deterioration of the economic situation in Russia. Further gradual fiscal adjustment is expected in 2015 and 2016, while the debt-to-GDP ratio is expected to peak in 2016.
Read a complete analysis of Cyprus' economy in the country report 2015
More detail can be found in the regular reports on the state of implementation of Cyprus' financial assistance programme
2015 recommendations in brief
In order to avoid duplication with reform measures set out in the programme and consistently with the approach followed in the previous years, the Commission has not issued additional recommendations to Cyprus in the framework of the European Semester.