Budget surplus in Cyprus due to real estate boom
Cyprus mail has reported that Cyprus’s has produced a 3.3 per cent budget surplus in 2007. The finance ministry reports have revealed the budget surplus and this is attributed to its strong economic performance which was mainly due to its real estate market is the reason for this high budget surplus.
Cyprus gross domestic product was valued at £12.5 billion in 2007, and is expected to reach £13.2 billion in 2008. Total revenue last year increased by 19.8 per cent, while spending grew by 8.4 per cent.
Government officials say taxes from their upbeat real estate market brought the cash to state coffers last year. Finance minister has said in an interview that the 3.3 per cent surplus is the result of buoyant economic activity. He also added that Economic growth in Cyprus is set to reach 4.2 per cent this year. Cyprus’s economy is moving at a faster rate than that of all the EU member states on average.
PricewaterhouseCoopers (PwC) said the Cyprus is likely to see strong economic growth of at least four per cent this year, reports the Cyprus Mail. PwC also said that the strong economic growth this year is mainly due to booming tourism sector.
Overseas property investors are watching the economic developments in Cyprus closely, as the market is becoming more popular among real estate buyers. Currency specialist firm HiFX noted that Cyprus appeal as an investment market is spreading across the world.
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