Tuesday, February 11, 2014
Cyprus Economy Doing Better Than Expected
Wall Street Journal
February 11, 2014
The economy of Cyprus, which was recently on the cusp of leaving the euro zone, is doing better than expected, a team of international experts overseeing its bailout program said Tuesday.
The tiny island nation's economic output contracted by about 6% in 2013—about two percentage points less than the experts originally thought. While the recession is very deep, it compares with some private-sector estimates last year that projected the country would lose up to 15% of its economic output
The team of inspectors from the so-called troika of institutions—the European Commission, the European Central Bank and the International Monetary Fund—issued the statement after completing a review of Cyprus's bailout, a €10-billion ($13.64 billion) aid package agreed last March and funded by euro-zone countries and the IMF.
The experts said the Cypriot economy will shrink by another 4.8% in 2014 before it returns to slow growth of 1% in 2015—sticking to their original projections but warning that they too may be revised if things continue going well.