You are here

Economy’s resilience confirmed

22/09/2015 12:20
The economy after an unprecedented period of deep recession that lasted for 3.5 years, during which the Gross Domestic Product (GDP) shrank by more than 10%, seems to be in the early stages of recovery and exit from the cycle of recession, a development which confirms the resilience of the Cypriot economy, and the courage and titanic efforts of entrepreneurs, the president of Paphos Chamber of Commerce and Industry Andreas Dimitriades told CNA.

Mr. Dimitriades said that a number of economic indicators are on a positive course and in addition macroeconomic and especially fiscal imbalances have shrunk considerably, creating a favorable climate for recovery and growth in the near future.

He added, however, that despite optimistic signs, growth is at a very early stage and is still considered unsafe while, as he said, it is expected that GDP growth will reach 1% to 1.5% in 2015.

Mr. Dimitriades said that the problems of the real economy and the market remain because it is not enough to achieve fiscal consolidation, adding that a total change of the investment policy of the state is needed as well as addressing the structural weaknesses of the economy in order to make productive investments, which will have a direct positive impact on the market.

Stabilizing and strengthening the positive performance of the economy depends, among others, on maintaining the momentum of implementation of the reform program, updating and consolidation of the state and the economy and also on a number of external factors, such as geopolitical developments in the region and in particular in the euro area.

He also noted that the economy will have to face, for a full recovery, the very high non-performing loans, high unemployment, modest borrowing and low development spending.

Although we have covered a difficult but necessary part of the road, we still have some way to go until wer reach the desired results, said the Chairman of Paphos Chamber of Commerce.

The effort must continue and be strengthened, as this is the only way our economy can improve its competitiveness, he said.