IMF Says Cyprus Is Vulnerable to Fallout From War in Ukraine

A beach in the resort town of Protaras in eastern Cyprus. 

Photographer: Amir Makar/AFP/Getty Images

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Despite a reduction in exposures to Russia, Cyprus is “highly vulnerable” to the economic fallout from the war in Ukraine, the International Monetary Fund said.

Growth is projected to slow to around 2 percent in 2022 from 5.5% in 2021 reflecting mainly the impact of the war and sanctions on export of services and the negative terms-of-trade shock from higher energy and food prices, the IMF said Thursday in its report on the eastern Mediterranean country after the completion of a post-memorandum audit.