Cyprus’ economy is growing at a positive rate

Cyprus has registered one of the lowest rates of euro area unemployment in June 2007 at 3.9%. According to figures published by Eurostat, the Statistical Office of the European Communities, euro area unemployment stood at 6.9%.

In June 2007, the lowest rates were also registered in the Netherlands (3.3%), Denmark (3.5%) and Ireland (4.0%). Unemployment rates were highest in Slovakia (10.7%) and Poland (10.2%). Twenty-two member states recorded a fall in their unemployment rate over a year and four an increase, while the unemployment rate was stable in Romania.

The largest relative falls were observed in Poland (13.9% to 10.2%) and Sweden (7.2% to 5.3%). The highest relative increases were registered in Luxemburg (4.6% to 4.9%) and Hungary (7.3% to 7.7%).

At the same time, Moody’s, one of the world’s premier rating agencies, in its recent evaluation of Cyprus’ economy revised higher the credit rating of Cyprus on foreign currency to “A1 Positive” in comparison to “A2 Positive”, which was the previous rating.

The Ministry of Finance considers Moody’s revised ratings as a positive development that “would strengthen the government’s credit worthiness and further improve the terms of financing”. According to the Ministry of Finance announcement, Moody’s considers Cyprus’ accession to the eurozone a positive step which will contribute to the improvement of the economy and further advance of establishments and citizens.

On a final note, according to the Ministry of Communications and Works, bids for two multi-million infrastructure projects, a motorway on the north-west of the island and further development of Larnaca port and its marina, have recently been opened.

Minister Maria Malahtou-Pampalli said the Paphos to Polis Chrysoxou motorway is expected to be completed in just over four years, at an estimated cost of 180 million Cyprus pounds. The 31 kilometre four-lane motorway will include side-roads linking the main motorway to other destinations in the area, nine uneven junctions, seven over-fly bridges to by-pass valleys and two tunnels. There will also be 25 under-ground and two over-ground passages to restore the existing road network which could be affected from the construction.

The Minister told a press conference as she opened the four bids that “this is a very important project for the city and the district of Paphos as it will provide easy and safe access to the town and the north-western region, something that gives new prospects for tourist development.” On the Larnaca port-marina project, the Ms Malahtou-Pampalli said this is the biggest infrastructure project in Larnaca, barring the international airport of the city. The successful bidder is expected to be announced by the end of the year
Source: Cyprus Embassy in the USA

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