Cyprus Will Enjoy Growth of 3.7% in 2009 and Full Employment is Expected to Endure According to Finance Minister

According to Cyprus Finance Minister, Charilaos Stavrakis, the country will enjoy growth of 3.7% next year along with full employment and a significant decrease in inflation.

“In spite of the world going through an unprecedented economic crisis marked by high levels of inflation and stagnation the Cyprus economy remains extremely satisfactory”, says Stavrakis.

The economic growth rate, which is close to 4%, is the second best in Europe.

Speaking at a news conference Stavrakis said that inflation would settle to 4.8% this year after record levels of over 5% earlier in 2008, but would abate next year to between 2.5% and 3%.

The full employment situation is expected to endure in 2009 despite average European unemployment rates of more than 7%.

Stavrakis continued that “This Government will not enforce any new taxes unless they are imposed on us by the European Union as part of the acquis communautaire”.

Government Spokesman Stephanos Stephanou, said that the Government’s aims were – “to secure a strong, competitive and robust economy which can support a developed social state, based on the economic capacity of the state, as well as the responsibilities we have undertaken before the EU”.

“These are most welcome figures although they do not entirely surprise me”, says Serge Cowan, MD at Unique Living a London based company with offices in Limassol and Paphos, specialising in the selling of high quality luxury Cyprus Property in the Southern part of the Cyprus. “We know from the type of properties they are building and the type of buyers they are attracting that the face of the country is changing. Once it was retired English moving to this safe retreat and establishing enclaves. Now we are seeing a continued interest from the British but also ex pats from the Middle East, but much higher up the market scale in terms of the price they are willing to pay for a home. There is a lot of interest from cash rich Russians and Scandinavian countries too are increasingly flocking to its shores.

The Government has looked carefully at its future and has planned a spectacular marina (Limassol Marina), and luxury development at Limassol, aimed at high end spenders. Hotels on the island are increasingly 5*, and marinas are being built for luxury yachts with Dubai style man made islands to include waterfront villas. Across Limassol and throughout the island, including areas like Latchi, where Unique Living has been instructed to sell an exclusive beach front development, homes are increasingly being sold at the top end of the market spectrum. We currently have beachfront villas starting at 4million euros. These are close to the Anassa Hotel where many A list celebrities have stayed. There is a feeling that this is the place in which to invest for a lifestyle as well as an investment. The islands location too must not be overlooked situated at the Eastern end of the Mediterranean it affords easy access between East and Western cultures.”

Pensioner property owners in Cyprus pay just 5% on their pensions, a lower tax than both Spain and France. Cyprus also offers a zero inheritance tax providing owners live there half the year and have severed all links with the UK