Through a glass, darkly

http://www.economist.com/news/finance-and-economics/21576666-outlook-even-grimmer-it-was-time-bail-out-through

The situation in Cyprus is still very uncertain with bank accounts still restricted and capital controls in place, which leads to people saving most of their money. Lack of a trade credit puts pressure on business and the longer capital controls remain in place the more damage will be done to the economy. Private debt of firms and households is close to 300% of GDP and unemployment rate currently at 14% continues to rise. European Commission changed its prediction of GDP drop to 8.7% in 2013 and 1.3% in 2014 but economists believe that those numbers might be too optimistic. European Commission is known for underestimating their predicted numbers in order to possibly keep some level of confidence. Therefore, it is difficult to foresee the near future but European authorities state that they are working on different solutions that will be least painful for the public.