a better future
Owing to better than expected economic and budgetary outcomes and the removal of capital controls without a corresponding slowdown in deposits, the international credit agency Standard and Poor’s (S&P) have seen fit to increase ratings for the Republic of Cyprus from B+ to BB in regard to long-term foreign and local currency sovereign credit ratings. In the event of continuing economic growth and increased stability in the nation’s financial sector coupled with improvement in the quality of their assets and government debt reduction, there is a possibility that S&P could further raise the ratings for Cyprus in the coming twelve months. Cyprus is just emerging from recession so the additional S&P prediction of economic growth of 1.5% for the current year 2015 and around 2% per annum thereafter is encouraging. The biggest contributors to the strong economic performance so far have been the tourism sector and business services whilst slowly increasing individual economic activity has played a part, along with the depreciating Euro and much reduced oil prices.
For the period 2015 – 2017 S&P expect that government debt to be in the region of 90% of Gross Domestic Product (G.D.P.), a figure that could well be reduced with funds gained from the privatisation of the electricity and telecom sector that the government is already committed to. A further reduction of the government debt to G.D.P. ratio could come about if lenders were to reduce their interest rates.
After a period of stagnation, there are signs that the property sector is bottoming out of the recession. This situation favours the buyer with significant bargains to be had by the canny investor before prices move ahead.
On the subject of unemployment, S&P expects a gradual tapering of the 16% figure mentioned in their report. Figures from the recent Labour Force Survey indicate that unemployment in the second quarter fell by 3% to 14.7% compared to 17.7% in the first quarter of 2015 marking a welcome trend.
Более подробную информацию о налогах и сборах при покупке недвижимости на Кипре вы можете получить на нашей странице.
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