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Cyprus 'still good for investment'

19th September 2008 | back to article listings BACK    print this article PRINT

Most of the recent headline news about Cyprus, not unreasonably, has been about the ongoing negotiations about the possible reunification of the island after 34 years of division between the Turkish Cypriot north and the Greek Cypriot south.

While this is going on, however, the south has to get on with governing itself, managing its budgets, running its tourist industry and selling property. All of these, of course, are interlinked, with property buyers keen to see a good economy and strong tourism sector, as these make for strong reasons to invest.

Some recent claims have been made that the outlook for the Cypriot economy is not good; that the credit crunch will gradually have an impact, turning the screw and pushing Cyprus into the same sort of economic downturn already being felt elsewhere.

However, the government has predicted no such thing. While in Britain we have had chancellor of the exchequer Alistair Darling telling the Guardian that the country is facing what may be the biggest economic challenge in 60 years, the finance minister of Cyprus, Charilaos Stavrakis, had a far more upbeat message this week.

Presenting his budget for the year ahead, Mr Stavrakis said the government was confident that there will be a budget surplus in 2009 of 0.7 per cent, less than the 1.5 per cent of 2007 but above the 0.5 per cent predicted for this year. Moreover, he predicted that there would still be economic growth of 3.7 per cent, a slight fall but the sort of figure many across Europe would look at enviously. Better still, inflation is predicted to drop from its current 4.8 per cent to between 2.5 per cent and three per cent.

While the minister did warn that 2009 will bring a slowdown in construction, the overall economic health he described may sound like music to the ears of those hearing less positive figures elsewhere. Of course, such projections may turn out to be better than the reality, but while nobody can be certain of the future the picture is an optimistic one. That at least could encourage a number of investors.

Writing about the island, TheMoveChannel.com described a number of positive features, while advertising the latest available properties - apartments in Paralimni from £117,520 and three-bedroom villas in Ayia Triada from £245,920 - which make Cyprus a pleasant place to live. It noted the 340 days of sunshine per year, the fine wine and food, the many historic churches and monasteries, the distinct customs and the anglophile attitude of Cypriots.

So while investors will keep an eye on Cyprus to check its economy is doing well, that property is holding up through any challenges it faces and that new opportunities are still arising, much of the appeal of the island, on which those renting property to tourists depend, is based on enduring and not ephemeral factors.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/4384.html. Alternatively, please see our full press release archive.

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