Cypriot FM Georgiades: Growth Expected to Exceed 3 Percent



Harris Georgiadis. Photo by Cyprus’ Finance Minister website

The economy of Cyprus is expected to grow more than 3 percent over the next three years, according to Cypriot Finance Minister Harris Georgiades during his presentation of the state budget for 2019.

Georgiades stated that higher education, as well as research and innovation, will be the next priority areas for the Cypriot government. He added that the island’s economy is not experiencing an economic bubble.

The finance minister also stated that the government’s goal is to keep a balanced budget, adding that any surplus would be used for debt reduction.

“This is the main principle, this is our policy and we keep on with this policy,” he said.

“Public debt is expected to rise to 104 percent of GDP, despite projections for an increase to 110 percent, and is expected to subside to 97 percent in 2019,” according to Georgiades. The finance minister warned, however, that Cyprus needs to be prepared for a rise in government bond yields.

Georgiades said that the 2019 state budget projects €8.55 billion ($9.70 billion) in revenue and €7.91 billion ($8.98 billion) in spending, leading to a projected surplus of 2.8 percent of GDP.

The finance minister stated that maintaining public spending below 40 percent of GDP was important, when considering the size of the Cypriot economy. Georgiades stated however that an increase in spending is expected in 2019 and 2020 due to the implementation of the General Health Scheme.

With information from C.N.A.