Morningstar DBRS upgrades Cyprus economic growth and unemployment forecasts

The rating agency Morningstar DBRS has revised its macroeconomic projections for Cyprus in March 2024. The agency increased its 2026 economic growth forecast to 3%, up from the previous estimate of 2.9%. Additionally, the growth forecast for 2027 was raised to 2.6% from 2.4%. Unemployment projections were also improved, with expectations now set at 4.5% for both 2026 and 2027, representing a decrease of 0.2 percentage points for each year compared to previous estimates. This outlook remains despite concerns regarding the conflict in the Middle East and potential negative economic impacts. On March 13, the agency confirmed Cyprus's long-term foreign and local currency issuer ratings at 'A' with a stable outlook. DBRS noted that the country's strong fiscal surpluses are expected to mitigate potential shocks from a prolonged regional crisis.