The IMF said the impact of the banking crisis on economic growth is “highly uncertain” and an economic slump could result in a “vicious cycle” of bankruptcies, drops in real estate prices, bank losses, and unemployment. If that happens it «could also lead to a deeper recession than anticipated,” the report said.
The IMF report projected that the Cypriot economy would shrink by 9 per cent this year and another 4 per cent in 2014 with unemployment forecast to peak around 17 per cent in 2014. However, it said there is a risk this contraction could be even deeper.
Well done Delia & co. Mission accomplished. Now let’s watch together how low can Cyprus economy go as a result of your „vicious cycle”.