Cyprus Minister of Finance outlines economy aims for 2009

Finance Minister Charilaos Stavrakis expressed satisfaction over figures for 2008, noting that the government succeeded in its aims which were to give the economy a boost to effectively overcome the first months of 2009 which have been burdened by the international economic crisis.

Addressing a seminar on the international economic crisis and its effects on the Cyprus economy, organized by the Federation of Employers and Industrialists , in Nicosia, the Minister analysed the prospects of the economy for 2009, noting that undoubtedly this year will be a very difficult one since “our economy depends on tourism, foreign investments and services”.

However he underlined that Cyprus will be least affected compared to other European countries.

Regarding the measures which the government is undertaking to handle the crisis, the Minister added that the effort concentrates on the government securing the highest possible rate of social development as well as continuing the effort for a fairer society through increased funds for social expenditure. He also said that the government commitment not to impose new taxes remains unchanged.

Stavrakis said that figures indicate Cyprus has a smallest percentage in the reduction of development rate, according to the EU and the International Monetary Fund, something that proves Cyprus can withstand the effects of the crisis than other EU economies.

According to unofficial figures, he said that the rate of development in the first three months of the year was close to 2% of the Gross Domestic Product. However, it is expected to decelerate in the second term due to the continued crisis.

“We aim to maintain the 2% of the GDP for the whole of the year but this depends largely on outside factors which cannot be foreseen at the moment”, the Minister concluded.