30/09/2014 11:47
The Cypriot economy is expected to record a growth rate in the region of 0%, according to the Cypriot Fiscal Council, which notes that the assumptions used by the Finance Ministry in drafting the 2015 state budget are “acceptable”.
In a press release signed by its President, Demetris Georgiades, the Council calls on the Finance Ministry to be prepared to take the necessary measures if needed, as the current projections may change.
Cyprus` international lenders estimate that the Cypriot economy will record a subdued growth of 0.4% of GDP, as revised following the third review of the Cypriot €10 billion financial assistance programme. The Troika`s (EC, ECB and the IMF) previous projection for 2015 was 0.9%.
“The Fiscal Council announces that the GDP growth rate for 2015 is expected around 0% with a possibility for a small increase,” the press release notes.
It also adds that the projections used by the FinMin in drafting the state budget for 2015 “are within the acceptable limits.”
“However because the current projections may change, the Fiscal Council called on the competent authorities of the Ministry of Finance to be prepared to take the necessary measures immediately if necessary,” the Council notes.
Furthermore, the Council believes that the economy will continue to contract in 2014 albeit with a smaller rate than the Troika projections, due to higher private consumption.
According to the Troika projections, the economy in 2014 will contract with a rate of 4.2%, whereas the Finance Ministry believes that the 2014 growth rate will be contained to -3%.
“We maintain our reservations as to whether this phenomenon will continue in the coming years,” the Council notes.
The Council will publish its Autumn report before the end of October.
In a press release signed by its President, Demetris Georgiades, the Council calls on the Finance Ministry to be prepared to take the necessary measures if needed, as the current projections may change.
Cyprus` international lenders estimate that the Cypriot economy will record a subdued growth of 0.4% of GDP, as revised following the third review of the Cypriot €10 billion financial assistance programme. The Troika`s (EC, ECB and the IMF) previous projection for 2015 was 0.9%.
“The Fiscal Council announces that the GDP growth rate for 2015 is expected around 0% with a possibility for a small increase,” the press release notes.
It also adds that the projections used by the FinMin in drafting the state budget for 2015 “are within the acceptable limits.”
“However because the current projections may change, the Fiscal Council called on the competent authorities of the Ministry of Finance to be prepared to take the necessary measures immediately if necessary,” the Council notes.
Furthermore, the Council believes that the economy will continue to contract in 2014 albeit with a smaller rate than the Troika projections, due to higher private consumption.
According to the Troika projections, the economy in 2014 will contract with a rate of 4.2%, whereas the Finance Ministry believes that the 2014 growth rate will be contained to -3%.
“We maintain our reservations as to whether this phenomenon will continue in the coming years,” the Council notes.
The Council will publish its Autumn report before the end of October.