According to the Centre for Economic Research of the University of Cyprus, GDP growth rate for 2015 is expected to reach 1,5%.

The main factors that lead to an increase of the GDP in the next months include the acceleration of the increase rate of domestic economic activity and employment in the third quarter of 2015 and the continuation of the improved domestic indicators in the last quarter of 2015.

In addition, it is noted that the reduction of domestic lending rates in conditions of reduced demand and high unemployment, and the stabilisation of the banking system will contribute to the economic recovery.

Recovery of the economy will be strengthened also by reduced international oil prices, while the weakening of the euro against major currencies, especially the British pound, will help increase activity through exports, and especially tourism.

“Reductions of European lending rates reflect the supportive monetary policy of the ECB which benefits Cyprus as well,” the press release concludes.

Source: Famagusta Gazette