Cyprus Central Bank: economy to grow 2.7 percent in 2016

Markets Associated Press

Cyprus' Central Bank chief says the island nation's economy will grow by slightly more than 2.7 percent of gross domestic product in 2016 and will hover at around the same levels for the next two years.

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Chrystalla Georghadji told parliament Thursday that growth is mainly driven by robust domestic consumption, investments and exports. Unemployment has dropped to 12.1 percent in the second quarter of 2016, down from a high of 16.1 percent in 2014.

She said public debt is projected to drop to 96 percent of GDP in 2019 from a peak of 109 percent in 2015.

Cyprus emerged in March from a three-year, multimillion-euro rescue program that included a seizure of savings over 100,000 euros in its two biggest lenders to prop up a wobbly banking sector.