Cyprus may be the only EU member state to see growth in 2009
Cyprus could be the only EU member state to see growth in 2009 and the Mediterranean island state is working on alternative measures to combat fallout on its economy from the world financial crisis, according to reports.
According to the EU’s spring economic reports, The Cyprus economy would grow 0.3 per cent in 2009 and 0.7 for 2010. This compares to negative growth rates forecast in all of the other 26 member states, ranging from -9 per cent in Ireland – with even worse predictions for some Eastern European countries up to -0.9 per cent in Malta and Greece.
Joaquin Almunia, European Monetary Affairs Commissioner speaking after the European Commission issued downwardly revised economic forecasts and Growth rates would only turn modestly positive in the second half of 2010.
Commenting on the situation in Cyprus, he said that in view of the ongoing global crisis, economic growth was expected to slow significantly in 2009 “but still remain in positive territory, domestic demand should continue to drive growth.”
Government officials stressed that the Cypriot banking system is sound and the government pays special attention to its tourism and the construction industry in particular. Kyriakos Karaiskakis, manager of Lartis Developers Ltd said that Cyprus has plans to woo potential buyers from Russia, Iran and other countries.
The government offered assistance to the construction industry in late 2008 with a EUR 25 mln stimulus package and in recently Cyprus has the highest rate per population in the EU, with the housing stock expanding by 30% in the past decade. The Central Bank of Cyprus is also confident that the economy as a whole and the financial system will both weather the current global economic crisis.
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[...] presented a comprehensive package of proposals, which could solve the structural problems of the Cypriot economy, increase the growth rate and reduce unemployment, adding that some of the measures need more [...]