29/11/2002 00:49
The recent political developments in Cyprus, as for the increased possibility of solving the partition problem have led Economist Intelligent Unit (EIU) – affiliated Company of the British ‘Economist’ – to revise its estimates over the growth of Cyprus economy for 2003. Specifically, on its monthly report with regard to the growth of the island’ s economy, EIU estimates that GDP for 2003 will increase by 4% against 3.1% according to previous estimates.
The EIU analysts said that this revision was particularly necessary ahead of the recent political developments that raise the possibilities of a solution to 60 per cent by April 2003, which is to boost the business climate in Cyprus, already seen by the significant rise of the CSE. EIU’s nine-page report mentions that a reunification of the island will benefit businessmen, in terms of employing Turkish Cypriots and expanding their business in the whole of the island.
The Economist, however, adhered to its estimates that growth rate is to reach 1.7% for the current year, that is half percentage point lower than the corresponding estimates of the Finance Ministry. Its estimates, though, do not include the significant decline in tourist income for August.
Meanwhile, the Economist foresees that budget deficit for this year will exceed Maastricht criterion, reaching 3.2%, while inflation is to reach 3.1% in 2002 and 4.2% in 2003.
The EIU analysts said that this revision was particularly necessary ahead of the recent political developments that raise the possibilities of a solution to 60 per cent by April 2003, which is to boost the business climate in Cyprus, already seen by the significant rise of the CSE. EIU’s nine-page report mentions that a reunification of the island will benefit businessmen, in terms of employing Turkish Cypriots and expanding their business in the whole of the island.
The Economist, however, adhered to its estimates that growth rate is to reach 1.7% for the current year, that is half percentage point lower than the corresponding estimates of the Finance Ministry. Its estimates, though, do not include the significant decline in tourist income for August.
Meanwhile, the Economist foresees that budget deficit for this year will exceed Maastricht criterion, reaching 3.2%, while inflation is to reach 3.1% in 2002 and 4.2% in 2003.
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