Cypriot economy set to keep growing
Investment prospects in Cyprus have been boosted by new predictions by the government about the economic growth in Cyprus.
Finance Minister Charilaos Stavrak Speaking to Reuters said that its economy will grow by about four per cent this year and a slight drop during the second quarter of 2008 was a seasonal oddness, partly because the tourism season had not got underway. He added that the tourism sector peaks in July and August, which means the slight fall earlier in the year should be reversed.
According to Forbes which cited the official government figures, the country’s gross domestic product in 2007 was 4.4 per cent up on the previous year. This has prompted officials in Cyprus to forecast a similar rate of economic growth during 2008. The Economic Intelligence Unit (EIU) has predicted that the island’s gross domestic product (GDP) should go up by 3.7 per cent this year.
Lucas Papademos, vice president of the European Central Bank has praised Cyprus economy and said that it has developed into a highly stable country and added that the island had set an example for other countries that wanted to pursue similar economic reforms.
The holiday industry generates more than a tenth of the island’s gross domestic product. Cyprus popularity as a holiday destination is directly helping to boost its housing market. Property values in the Mediterranean island increased by more than three per cent during the first quarter of the year. This means that it could be an ideal market for people who wish to invest in a foreign property.
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