Cyprus economy to record fiscal surplus by end of 2007

By the end of this year the Cyprus economy will record a fiscal surplus and not a fiscal deficit, Minister of Finance Michalis Sarris has announced to his Eurozone counterparts and EU Commissioner for Economic and Monetary Affairs Joaquin Almunia.

Almunia said after an ECOFIN meeting in Brussels that the Cypriot Minister had informed them that due to an increase in revenue from taxation, the economy of the country will record by the end of 2007 a slight surplus.

The EU Commissioner said he was satisfied with this development which he described as excellent, adding that Cyprus is trying to put its finances in order.

Last Friday, the European Commission predicted that Cyprus’ public deficit would reach 1% of GDP by the end of this year. The Commission at the time was not aware of the latest developments.

Cyprus will enter the Eurozone on January 1st, 2008.