Christofias: FDI could tackle Cyprus economy’s growth weaknesses

The attraction of Foreign Direct Investments (FDI) could tackle the growth weaknesses of the economy, Cyprus President Demetris Christofias said on Wednesday.

''The attraction of foreign corporate capital, mainly for direct investments could play an important role in the effort to face the growth weaknesses of the economy and the restructuring of the productivity so that (the economy) it would become more competitive to the ever changing international economic conditions,'' President Christofias said addressing the Cyprus Investment Promotion Agency (CIPA) General Assembly.

Cyprus saw its economy contract by 1.7 in 2009 per cent due to the global financial crisis. For 2010, the Cypriot Stability Plan projects a 0.5% growth rate and a gradual recovery to 3% by 2013.

''We will do our utmost to make sure that the current crisis will affect us to the smallest possible extent,'' the President noted, assuring that ''the government is at constant vigilance, primarily as far the public finances are concerned.''

He added that ''our aim is the preservation of the Cypriot economy's credibility through mitigating the negative consequences as well as the substantial promotion of Cyprus as an international financial centre.''

Referring to the importance of FDI, President Christofias pointed out that FDI has an important contribution to the state's Gross Domestic Product and to the improvement of the balance of payments, while when they concern productive installations they increase the economy's productivity and the competitiveness of the economy and create jobs.