Cyprus’s Economy will contract by at Least 5 percent and possibly by more than 15 percent this year, according to most financial analysts, portfolio managers and other investment professionals on the island interviewed in a survey.
About 44 percent of the 72 members of the [Dear Guest/Member you can't see link before click here to register] who answered the Survey said the country’s economic contraction will be between 5 percent and 10 percent this year. Another 33 percent said the slump could be as high at 15 percent, while 11 percent predicted a larger decline. Cyprus CFA Society is the local society of Virginia-based [Dear Guest/Member you can't see link before click here to register].
Finance Minister Haris Georgiades this week declined to give a forecast for how much the Economy will Shrink this year after Cypriot President Nicos Anastasiades agreed to measures including a tax on bank deposits of more than 100,000 euros at the country’s two biggest banks and the sale of assets to secure 10 billion euros ($13.1 billion) of loans from the euro area countries and the [Dear Guest/Member you can't see link before click here to register].
Anastasiades is set to announce later today a series of measures designed to boost growth as he attempts to restore confidence after the country’s financial services industry was irreparably harmed both by the deposit tax and the subsequent restrictions on capital movement, the first time these have been imposed in a euro-area country.
Cyprus’s rescue program includes a forecast for gross domestic product to decline 8.7 percent this year, compared with a European Commission projection for a 3.5 percent contraction before the Cypriot bailout was agreed. Government spokesman Christos Stylianides said on April 4 that GDP could fall by as much as 13 percent this year.
Return to Growth
Nearly half of those surveyed, or 47 percent, forecast Cyprus won’t return to economic growth in two consecutive quarters until between 2015 and 2017, while 31 percent predicted the Economy will continue to contract until between 2017 and 2019. More than eight in 10, or 81 percent, said Cyprus will recover faster by remaining within the euro area.
Just over 72 percent of those who answered said oil and gas exploration and exploitation should be one of the main three drivers of Cyprus’s new growth model, along with the leisure and casino industries. Almost 71 percent said that the crisis will have a significant negative affect on industries other than banking services.
About 44 percent of the 72 members of the [Dear Guest/Member you can't see link before click here to register] who answered the Survey said the country’s economic contraction will be between 5 percent and 10 percent this year. Another 33 percent said the slump could be as high at 15 percent, while 11 percent predicted a larger decline. Cyprus CFA Society is the local society of Virginia-based [Dear Guest/Member you can't see link before click here to register].
Finance Minister Haris Georgiades this week declined to give a forecast for how much the Economy will Shrink this year after Cypriot President Nicos Anastasiades agreed to measures including a tax on bank deposits of more than 100,000 euros at the country’s two biggest banks and the sale of assets to secure 10 billion euros ($13.1 billion) of loans from the euro area countries and the [Dear Guest/Member you can't see link before click here to register].
Anastasiades is set to announce later today a series of measures designed to boost growth as he attempts to restore confidence after the country’s financial services industry was irreparably harmed both by the deposit tax and the subsequent restrictions on capital movement, the first time these have been imposed in a euro-area country.
Cyprus’s rescue program includes a forecast for gross domestic product to decline 8.7 percent this year, compared with a European Commission projection for a 3.5 percent contraction before the Cypriot bailout was agreed. Government spokesman Christos Stylianides said on April 4 that GDP could fall by as much as 13 percent this year.
Return to Growth
Nearly half of those surveyed, or 47 percent, forecast Cyprus won’t return to economic growth in two consecutive quarters until between 2015 and 2017, while 31 percent predicted the Economy will continue to contract until between 2017 and 2019. More than eight in 10, or 81 percent, said Cyprus will recover faster by remaining within the euro area.
Just over 72 percent of those who answered said oil and gas exploration and exploitation should be one of the main three drivers of Cyprus’s new growth model, along with the leisure and casino industries. Almost 71 percent said that the crisis will have a significant negative affect on industries other than banking services.