EIU expects 0.7% GDP growth for Cyprus

The growth rate in Cyprus for 2009 is expected at 0.7% according to the June Country Report on Cyprus issued by the Economic Intelligence (EIU). The EIU analysts anticipate GDP to grow by 1.2% in 2010, whilst they expect the 0.9% government surplus of 2008 to swing back into deficit reflecting the weaker economic conditions as well as the higher spending side.
EIU analysts expect the deficit for 2009 and 2010 to reach 2.3% (below the -3% ceiling of the euro area countries), whilst government debt/GDP is expected at 48.1% and 47.8 respectively. As far as inflation is concerned, the EIU does not see that as an issue of concern in either 2009 or 2010 with the EU HCPI forecasted to decelerate to 0.8% in 2009 before edging up to 1.8% in 2010.