Cyprus economy seen falling 0.5 pct in 2010

The Cypriot economy is expected to contract by 0.5 percent in 2010 but rebound in 2011 with growth of 1.3 percent, the island's Central Bank said on Friday.

In its semi-annual report, the Central Bank said its latest forecasts were in line with an expected drop-off in domestic demand, and a slowdown in construction and tourism this year. Its previous forecast, issued in Dec. 2009, had Cyprus registering growth of 0.3 percent this year and 1.8 percent in 2011.