Cyprus economy growth boosts overseas property buyers
Forbes mentioned about the government’s official figures as the country’s gross domestic product in 2007 was 4.4 per cent up on the previous year and these figures confirmed the continued economic growth of the island.
Cyprus’s economy is 71.3 percent free and this makes it the world’s 22nd freest economy. Inflation rate is fairly low and averages 2.5 percent between 2004 and 2006. Fiscal deficit is below 1.5% in 2006 and continuously reducing. Cyprus has a steady macroeconomic environment and Non-EU investors can invest directly or indirectly in most sectors. Accession to the EU has further reduced barriers to investment.
The reduced interest rates is proving very popular with overseas investors who have already seen rates fall to 4.25% and they are prepared that rates could drop as low as the European Central Bank‘s base rate of 2.%.
The fabulous weather, booming tourism and British nature of the island appeal to many affluent buyers. English is spoken widely in Cyprus which makes its appeal international and not just confined to the UK. Nearly 340 rain-free days per year, longest tourist seasons in Europe, increasing ex-pat community and highly beneficial tax regime entices overseas property investors to look for Cyprus.
This has prompted officials in Cyprus to estimate a similar rate of economic growth during 2008.This would mean that Cyprus’s economy is on the rise much faster than that of all the EU member states taken on average.
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