Speaking at an event organised by the Cyprus Branch of the Institute of Directors, Stavrakis noted that despite international economic challenges, the local economy is a robust economy with satisfactory growth rates, almost full employment, controlled inflation, low interest rates and healthy public finances.

However, Stavrakis admitted that “the rising oil and food prices will eventually affect the economy of Cyprus”.

The inflation rate, said Stavrakis, is expected to range between 4% and 4.5%, compared to 2.5% in 2007, and the unemployment rate for the current year is expected to remain at the same levels as in 2007, when it fell to 3.9% of the economically active population.
The Cypriot Minister also noted that public finances remain at a good level and the fiscal balance is expected to remain in surplus, around 0.5% of the Gross Domestic Product. In addition, public debt is projected to fall to 48% of the GDP in 2008.

Stavrakis pointed out that the decrease in the rate of growth in the construction and banking sectors leads to a smaller increase of the government revenue and puts incremental pressure on the fiscal balance.

“The number of foreign investments in Cyprus continues to grow significantly, according to the data of the Department of the Registrar of Companies and Official Receiver, with Russia becoming the most important economic partner of Cyprus,” Stavrakis noted and added: “Russia is a country with very good economic potential.”

Regarding inflation, Stavrakis stressed that its rising trend needs attention, because any price increase affects Cyprus to a greater extent than other competitive to Cyprus countries. “As a result, Cyprus becomes less competitive”, he added.

Source: Financial Mirror

Experienced investors aren’t fazed by the credit crunch and still intend to buy property, especially in foreign markets, the Jet-to-Let Magazine Annual Conference survey has revealed. 

The Jet-to-Let Magazine 2008 Annual Conference recently took place at The Hilton Metropole in London. The conference was attended by a wide range of experienced investors - some with experience dating back four decades – and delegates were surveyed about their property purchases and views on the current investment outlook. The results, which provide an up-to-date snapshot of investor sentiment, show that 77% of respondents felt the credit crunch has not impacted on their desire to invest in property.

Eighty-five per cent of people viewed overseas jet-to-let properties as currently offering better opportunities than the UK housing market and are planning to invest in 17 different countries in the coming year, including Cyprus (39.7%), Morocco (19.4%), France (13.3%), Germany (5.1%) and Italy (4%).

They already had investments in 27 different countries outside of the UK, including Cyprus, France, Dubai, Brazil, Turkey and Spain. The combined property holdings of the investors totalled many hundreds of millions of pounds.

Despite the bleak picture portrayed recently by the media about UK property, 92% of attendees said they already have investments in the UK and 54% said they’re planning on investing this year. In addition, 72% have confidence in the UK property market bearing fruits over the next five years, whilst this rises to 89% over the next 10 years.

“The results clearly show that educated investors understand the long-term nature of property investment,” commented Dominic Farrell, editor of Jet-to-Let magazine and author of the bestselling property investment book, The Jet to Let Bible. “They realise there are currently better opportunities overseas, but still have medium to long-term confidence in UK property.”

Where reasons for investing are concerned, 98% cited property as being a sound long-term pension plan. Foreign currency mortgages were favoured by 98% of people and 78% said they used a specialist foreign currency broker.

Finally, when asked what the best form of long-term investment was, and with a choice of cash, stocks or property, an overwhelming 100% of people declared it to be property.

Notes for Editors

Jet-to-Let magazine is a free quarterly subscription publication aimed at investors and homebuyers seeking superior returns in domestic and overseas property markets. It’s currently delivered to subscribers located in 61 countries worldwide.

Jet-to-Let magazine is edited by Dominic Farrell, author of the bestselling property investment book, The Jet to Let Bible. The groundbreaking magazine is a must-have source of quality investment advice for both novice and experienced investors alike and brings together the views of respected professional investors, developers, financiers and journalists. For more details, or to set up a free subscription, see www.jet-to-let-magazine.com

For more details or interview requests with Dominic Farrell, contact:   0151 482 5543

Virtually year-round sunshine and a stable economy have long made Cyprus a popular choice for those buying a first or second home in the Mediterranean. Recently cited as a bright spot in the international property market, it was described in the Euro Housing Review by the UK’s Royal Institution of Chartered Surveyors’ as “a rare case of a country shrugging off the gloom”.

Source: FT.com