After reaching its nine-year high in 2017, the Cyprus economy continued it's positive growth in 2018. According to the Ministry of Finance, the GDP growth reached 3.9%, which is almost twice higher than the EU average of 2.2%. The IMF predicts that the growth will continue to 4.2% in 2019, and then a steady slowdown to 2.4% in the next 5 years (but still higher than the EU average). Such impressive growth has been made possible by strong domestic demand and export increase.
Since the economic crisis in 2013, the country has made significant progress. For the first time since 2012, the rating agencies S & P, Fitch and DBRS have raised the sovereign credit rating of Cyprus to an investment grade with a stable outlook.
The inflation rate as of Q3 2018 in Cyprus fell to 0.5%, which is significantly lower than the average inflation rate in the Eurozone at 2.1%. The unemployment rate also dropped significantly and, according to Eurostat, amounted to 7.5% in August 2018, which was even lower than the average for the Eurozone. The IMF predicts that unemployment in Cyprus will fall to 6.1% by 2023.