Revised data for December show that Cyprus recorded a huge trade deficit of EUR 6.2 bln, or 35% of GDP in 2008, owing to a large increase in imports as oil prices soared. Total imports/arrivals in January-December 2008 amounted to EUR 7,349.0 mln, a rise of 15.7% compared with EUR 6,353.4 mln in January-December 2007.

The global downturn has started to take its toll on Cyprus, as data show that retail sales fell for a second consecutive month at the end of 2008. According to provisional figures for December, the volume of retail sales fell by 3% compared with December 2007. In November retail sales had fallen by 3.9%. The

Amid growing pressure for a peace deal on Cyprus, a United Nations envoy cautioned against a superficial quick fix and said on Friday that any agreement must last. Cyprus's estranged Greek and Turkish Cypriot communities have been discussing reunification since September 2008, the latest attempt to end a 35-year conflict that is holding up Turkey's

Britain said on Friday it had not split the G20 group of leading developed and emerging nations into high and low priorities, but did not deny the existence of a document identifying 11 high-priority states. The Financial Times said it had obtained a confidential tender issued in December by the government to supply public relations

Turkish Cypriot authorities threatened on Friday to seize a media group in Cyprus belonging to fugitive businessman Asil Nadir over unpaid taxes. Turkish Cypriot officials said Nadir, who fled Britain in 1993, owed millions in taxes to the breakaway statelet in north Cyprus. Press reports said sequestration papers would be served later on Friday unless

Japan and China on Friday backed government spending as the top priority in attempts to counter the global economic crisis, ahead of a G20 meeting where the United States and Europe are split over the need for more aggressive stimulus. Finance ministers from the group of leading powers will also discuss European demands for tougher