Despite the bail-out programme the ruling Democratic Rally (Disy) party performed well in the European Parliament elections in May 2014. However, implementing unpopular structural reforms will become more difficult.
The Economist Intelligence Unit assigns around a 30% probability to a settlement of the Cyprus problem. However, mistrust between the two negotiating sides remains very high.

Highlights 7

Political outlook 8

Economic policy outlook 9

Economic forecast 12

Annual data and forecast 15

Quarterly data 16

Monthly data 17

Annual trends charts 19

Monthly trends charts 20

Comparative economic indicators 21

Basic data 22

Political structure 23

Politics 24

Economy 30

Summary 47

Basic data 48

Political structure 49

Economic structure 50

Annual indicators 50

Quarterly indicators 51

Comparative economic indicators 52

Outlook for 2015-16 53

Political outlook 53

Economic policy outlook 54

Economic forecast 56

Recent analysis 59

Economy 59

International assumptions summary 56

Forecast summary 58

Gross domestic product 58

Consumer price inflation 58

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