IMF lifts Cyprus growth forecast for 2027 as government advances crypto oversight

Nicosia, Cyprus. The International Monetary Fund (IMF) has increased its forecast for Cyprus’s economic growth in 2027 to 3.2 per cent, drawing a welcome on Thursday from Finance Minister Makis Keravnos. Separately, proposed cryptocurrency legislation would strengthen regulatory powers and introduce penalties reaching €15 million for serious breaches.

Growth outlook revised

In its October 2026 World Economic Outlook, the IMF lowered its 2026 growth estimate for Cyprus to 2.9 per cent from 3 per cent, reflecting the effects of continuing conflicts. Its projection for 2027 increased from 3 per cent to 3.2 per cent.

The Finance Ministry is retaining a higher forecast of 3.1 per cent for 2026, supported by figures from the statistical service, Cystat, showing growth of 3.2 per cent in the year’s first half.

Keravnos said in a statement that the IMF projections echoed assessments from other international and European institutions. He said they strongly demonstrated the Cypriot economy’s resilience amid persistent international uncertainty and pressures arising from developments abroad.

Crypto bill sets out enforcement powers

The Markets in Crypto-Assets Bill of 2026 would establish Cyprus’s national framework for enforcing the European Union’s Markets in Crypto-Assets Regulation, or MiCA. The proposal would broaden the enforcement authority of the Central Bank of Cyprus (CBC) and the Cyprus Securities and Exchange Commission (CySEC).

Following cabinet approval on September 10, the bill was submitted to the House of Representatives on October 8. Parliamentary records show it was formally introduced together with other financial legislation, advancing the completion of domestic arrangements needed to enforce the EU rules.

The proposed framework seeks to make digital-asset supervision more consistent, improve protection for investors and tackle misconduct in a market that has grown considerably over recent years. Substantial financial sanctions would apply to both businesses and individuals failing to meet regulatory obligations, with penalties reaching €15 million for serious breaches.

Oil market pressures could persist

The International Energy Agency (IEA) warned that tight conditions in global oil markets would persist despite declining demand and recovering production. Against that backdrop, Cyprus could continue facing pressure on fuel prices, transport costs and business expenses well into 2027.