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The European Central Bank released its forecasts on Cyprus economy, forecasting GDP growth steady at 3,8% for 2006, Fiscal deficit of 2,1% of GDP for 2006, Inflation at 2,4% and public debt at 69,1% of GDP, according to information provided by Egnatia Financial Services (Cyprus). The progress of the Cypriot economy was positively commented by Commissioner J. Almunia.
Fiscal deficit is seen at 2.1% of GDP and 2% of GDP in 2006 and 2007 respectively, compared to 2.4% of GDP in 2005. Note that the EMU criterion is set at 3% of GDP.
Inflation is seen at 2.4% and 2.2% in 2006 and 2007 respectively, compared to 2% recorded in 2005. Recall that the EMU criterion states that inflation should not be above 1.5% of the average inflation of the three countries with the lowest inflation rate.
Public debt is decreasing from 70.3% of GDP in 2005 to 69.1% in 2006 and 67.8% in 2007. Recall that the EMU criterion states that Public debt should be lower than 60% exhibits a decreasing trend.
GDP growth rate is seen stable at 3.8% in both 2006 and 2007. The outlook of the Cyprus economy was positively commented by Commissioner J. Almunia, who also mentioned that the above forecasted economic indicators could be negatively affected by the risk of increases in oil price. | 
