NICOSIA, Nov. 8 (Xinhua) -- The European Bank for Reconstruction and Development (EBRD) has upgraded its forecast of Cyprus' economic growth to 3.5 percent and 2.5 percent in 2017 and 2018, local media reported on Wednesday.
Despite high levels of debt and bad loans, EBRD expects that the growth rate of the Cypriot economy will reach 3.5 percent this year, from 2.5 percent in its previous estimate in May 2017, and the figure will reach 2.5 percent in 2018, said Cyprus News Agency.
According to EBRD, "Cypriot economic activity has sped up in 2017, building on the robust recovery of the past couple of years," and "GDP growth is estimated at 3.6 per cent year on year in H1 2017, driven by strong performances in retail and wholesale trade, construction and manufacturing."
"In light of these trends, we are upgrading our annual GDP growth of Cyprus' forecast for 2017 from 2.5 to 3.5 per cent," EBRD said in a report published on Tuesday.
"Nevertheless, significant headwinds remain, including the very high levels of indebtedness in the economy," it warned.
