17/09/2003 13:24
Finance Ministry said on Wednesday that its forecasts for a growth rate of 4% of GDP for 2004 are “conservative”. Commenting on the estimates included in the Pre-Accession Economic Program, Manager of the Economic Studies and the European Union of the Finance Ministry, Andreas Charalambous, stressed that the forecasts for a growth rate of 4% are conservative, since “there are indications for a strong recovery in 2004”.
In the PEP submitted to Brussels, the Ministry committed itself to reduce the fiscal deficit to 3.7% in 2004 and 2.2% until 2006, while this forecast is largely based on the estimate that the Cyprus economy will grow by 4% in 2004, 4.6% in 2005 and 4.6% in 2006.
Mr. Charalambous explained that the Finance Ministry’s forecasts are described as conservative, as PEP’s estimates are based on the increase of tourist arrivals in the next three years to the levels of 2001. “We have to take into consideration, however, the unexpected developments that would change these prospects”, Mr. Charalambous noted.
In the PEP submitted to Brussels, the Ministry committed itself to reduce the fiscal deficit to 3.7% in 2004 and 2.2% until 2006, while this forecast is largely based on the estimate that the Cyprus economy will grow by 4% in 2004, 4.6% in 2005 and 4.6% in 2006.
Mr. Charalambous explained that the Finance Ministry’s forecasts are described as conservative, as PEP’s estimates are based on the increase of tourist arrivals in the next three years to the levels of 2001. “We have to take into consideration, however, the unexpected developments that would change these prospects”, Mr. Charalambous noted.
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