Economic Sentiment Index improves in Cyprus

The Economic Sentiment Index in Cyprus in September 2009 recorded the largest improvement among Eurozone countries, reaching 66.7 points, from 56.1% in August.

According to a monthly European Commission report, in Cyprus the services index reached -12 in September from -17 in August, the retail sales index reached -20 from -26, the industry index reached -14 from -20, the consumer index -33 from -38, and the construction sector index -44 from -49 units.

Most EU member states recorded improved rates. The index rose to 82.6 points in the EU and to 82.8 in the Eurozone.

Addressing the European Parliament's Economic and Monetary Affairs Committee, Eurogroup Chairman Jean Claude Juncker said the Eurozone economy is stabilising after the crisis, but the situation remains fragile and the outlook is uncertain.

According to Juncker, the situation is largely stabilising and ''we can be modestly optimistic'' in terms of economic growth in the second half of the year.

On the other side, ''the situation remains fragile'' and economic recovery will be very limited with a long period of rather weak growth, he said, adding that even before the crisis, growth potential had only been around 2.5 per cent and between 2010 and 2020 growth might amount to just 1.5 per cent annually.