Central Bank sees Cyprus GDP growth in 2009 at 2%

Cyprus's economy is expected to register a slowdown to growth of around 2% in 2009, with inflation seen falling below 3%, Central Bank Governor Athanasios Orphanides said.
'The assessment of the Central Bank of Cyprus is that a significant slowdown will be seen in 2009, with real GDP growth expanding by around 2%,' Orphanides, member of the Governing Council of the ECB, told the finance committee of Cyprus's parliament.
The growth projection contrasts sharply with Finance Ministry estimates, which put 2009 growth at 3%.
Orphanides said the global financial crisis was expected to hit construction, tourism and affect consumer spending.
'This picture is expected to reverse somewhat in 2009. That is naturally the central scenario and we cannot rule out notably lower rates of growth because of the heightened uncertainty,' he said.
Lower prices of oil were expected to push inflation below 3% next year, Orphanides said.
The island, which joined the euro zone on Jan. 1, was expected to register growth of between 3.5 and 3.75% in 2008, he said.