NICOSIA -- The International Monetary Fund (IMF) projects that Cyprus’ economy will shrink by 1,2% in 2012 and will grow by 0,8% in 2013. According to the April 2012 edition of the IMF World Economic and Financial Survey, released on Tuesday, Cyprus inflation rate is expected to be 2,8% in 2012 and to fall to 2,2% in 2013. In addition, the IMF projects that the deficit of the Cyprus Current Account Balance as a percentage to GPD will be 6,2% in 2012 and 6,3% in 2013.

For Greece, IMF projects that the economy will shrink by 4,7% in 2012 and that there will be zero growth in 2013. As regards unemployment race in Greece, IMF projects that will reach 19,4% in 2012 and 2013 as well.

The April 2012 edition of the World Economic Outlook assesses the prospects for the global economy, which has gradually strengthened after a major setback during 2011.

The Survey shows that the global growth will be 3,5% in 2012 and 4,1% in 2013.“After suffering a major setback during 2011, global prospects are gradually strengthening again, but downside risks remain elevated”, the survey points out.

The Euro area is still projected to go into mild recession in 2012 (0,3%) as a result of the sovereign debt crisis and a general loss of confidence, the effects of bank deleveraging on the real economy and the impact of fiscal consolidation in response to market pressures. In 2013, the Euro zone economies will grow by 0,9%.