he European Commission report of November 2014 says that the recession in Cyprus in 2014 has been milder than expected.
According to the report, economic activity continued to decline within the first half of 2014, falling by 3.0% compared to the first half of last year. This contraction was smaller than anticipated. Cyprus GDP declined in 2014 by 2.8% compared to 5.4% in 2013.
Moreover, the report states that a modest economic recovery is expected within 2015 and this recovery is expected to be stronger in 2016 with projected growth of 1.6%. The report observes Cyprus continues to introduce the budget adjustments required to increase tax collection and commented of the Governments’ efforts to improve the economy which are expected to improve public finances.
Although the report is overall positive in terms of the progress of the Cypriot economy, the report did warn that sanctions against Russia might negatively influence the economy of the island.