Cyprus 2010 GDP growth seen at 0.5-1.0%

 * Deficit seen falling —
The island’s economy is seen growing between 0.5 and 1.0% in 2010, Finance Minister Charilaos Stavrakis said on Monday.
"There is a small acceleration in growth," Stavrakis told reporters. "A safe assessment (for the whole year) would be for growth of between 0.5 and 1.0%."
The economy grew 0.6% in the third quarter, its third quarter of growth after five quarters of contraction. Authorities reported an upturn in banking and tourism, while construction remained in negative territory.
The finance ministry's main scenario sees nominal GDP expanding to 17.5 bln euros in 2010, from 16.9 bln in 2009.
Stavrakis said the island's budget deficit could fall to 5.5% of GDP without any unforeseeable expenses in the last two months of the year. Its deficit reached 5.96% of GDP in 2009.
"There were lots of expenses last year which were non-recurring. Indications are the first 15 days of (this) November went very well," he said.
The island was placed under the EU's excessive deficit procedure and must incrementally cut its deficit to 4.5% of GDP in 2011, and below 3.0% in 2012.