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IMF Boosts Cyprus Growth Forecast

by THEFUTURE.TEAM

The International Monetary Fund (IMF) has upgraded its growth forecast for Cyprus, raising the 2024 projection from 2.7% (April estimate) to 3.3%, according to the October 2024 World Economic Outlook (WEO). For 2025, growth is also expected to increase to 3.1%, up from 2.9%. This places Cyprus among the top economies in the eurozone, with only Malta and Croatia expected to post higher growth rates at 5% and 3.4%, respectively. Cyprus’ Finance Ministry is even more optimistic, estimating 3.7% growth for 2024.

Inflation in Cyprus is forecasted to ease, with the IMF projecting a slight decrease to 2.2% in 2024 and 2% in 2025. This represents an improvement from the previous forecast of 2.3% for 2024. Unemployment is also expected to drop, with figures predicted to fall to 5.3% in 2024 (down from April’s 5.9% projection) and further to 5.1% in 2025.

On a less positive note, Cyprus’ current account deficit is expected to widen. The IMF predicts a deficit of -10.1% of GDP in 2024, compared to the -8.6% previously estimated, and -8.6% in 2025. The Cypriot government, however, has a more conservative forecast of -8.5% for 2024 and -7.6% for 2025.

Globally, the IMF forecasts steady growth of 3.2% for 2024 and 2025, with notable upgrades for the U.S. economy. U.S. growth is now expected to reach 2.8% in 2024, up from 2.7%, and 2.2% in 2025, revised from 1.9%. In contrast, Germany’s growth outlook has been downgraded, with zero growth expected in 2024, down from 0.2%, and a modest recovery to 0.8% in 2025.

This report highlights Cyprus’ strong economic recovery, buoyed by strategic fiscal policies, even as other global economies face slower growth.

Bitcoin Surges 23% In A Week As Investor Optimism Returns

by News Editor

Bitcoin was on track for a weekly gain of around 23% on Friday as a series of positive macroeconomic and policy developments boosted investor sentiment.

The cryptocurrency was trading about 6% higher at roughly $77,000, up from around $62,800 at the start of the week. Crypto-related stocks also rallied, with Coinbase and Circle gaining more than 9%, while Strategy rose 7%.

Macro Factors Fuel Rally

Bitcoin’s latest surge began Wednesday after Treasury yields fell sharply following a major intervention by the U.S. Treasury in the bond market. Lower yields eased pressure on risk assets and helped trigger a broader move into cryptocurrencies.

The rally was further amplified by a major short squeeze. Around $2.7 billion in crypto short positions were liquidated, according to CoinGlass.

Max Stuedlein, head of Partnerships at Sygnum APAC, said the move reflected an alignment of macroeconomic and policy catalysts, including the Treasury’s decision to increase buybacks of longer-dated government debt.

Clarity Act Boosts Sentiment

Investor confidence improved further on Thursday as the White House and crypto industry leaders made a final push to advance the Clarity Act in the coming weeks.

The legislation is widely viewed as a potential catalyst for the crypto market, although its chances of passing remain relatively limited.

Despite the rally, bitcoin remains well below its 2026 high of $94,820 reached in January and its all-time high of $126,198, set last October.

Analysts See More Volatility Ahead

Lucy Gazmararian, founder and managing partner at Token Bay Capital, said the crypto market may be approaching the end of its bear cycle.

She expects bitcoin could experience one more decline of around 20% before the market turns, pointing to historical cycles and the recent liquidation of heavily leveraged short positions.

Gazmararian also described bitcoin as a long-term hedge against monetary debasement, while warning that its short-term price remains highly volatile and driven by market cycles.

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