Cyprus projects 3.7 percent growth for 2009
NICOSIA, Cyprus (AP) — Cyprus is projecting a budget surplus in 2009 for the third straight year despite continuing global economic turmoil, the finance minister said Wednesday.
Charilaos Stavrakis said he is “committed” to meeting a 2009 surplus target of 0.7 percent to complement a half percentage point surplus forecast for 2008.
Cyprus posted a 1.5 percent budget surplus at the end of 2007, despite earlier projections of a deficit. The island joined the euro zone on Jan. 1. Stavrakis told a news conference to unveil the Cabinet-approved budget that Cyprus remains “sensitive” to roiling global markets. But he said the island would continue to post healthy economic numbers in 2008 including 3.9 percent growth and “full employment conditions”.
He projected growth for 2009 would dip slightly to 3.7 percent, but inflation now standing at 4.8 percent would recede to between 2.5 and 3 percent.
Stavrakis said fiscal discipline would ensure a continued “impressive” drop in public debt from a projected 49 percent of gross domestic product in 2008 to around 45 percent in 2009 without the introduction of any new taxes.
The $10.67 billion budget includes funding for 30 major infrastructure projects and a $313 million spending boost for health and education programs and assistance for low and middle income earners.
Government spokesman Stefanos Stefanou said the “socially sensitive, development-oriented and balanced” budget ensures a strong, competitive economy to meet the needs of “vulnerable population groups.”
Tags: Cyprus, economic growth, economy, global markets
