|
NICOSIA, Cyprus (AP) -- Cyprus aims to cut its budget deficit by half in the next year while the economy will continue to grow at a rate of 4 percent, the government said Thursday. According to the 2008 budget, the deficit will drop to 0.5 percent of gross domestic product -- down from an expected 1 percent this year. Growth is projected to continue at a rate of 4 percent while the public debt is expected to fall to 53 percent of GDP from 61 percent in 2007. Cyprus will start using the euro Jan. 1, 2008 after becoming an EU member in 2004. Finance Minister Michalis Sarris said he expected the growth rate to be maintained in the next few years. "I believe we have the potential to remain at 4 (percent), four plus even, and continue the increase in employment," Sarris said after submitting the state budget to parliament. Unemployment, at 4.3 percent, is expected to drop to 4.1 percent in 2008. Revenues are expected to reach 3.2 billion Cyprus pounds ($7.7 billion) as opposed to 3.8 billion Cyprus pounds ($9.2 billion) in expenditure. The budget is expected to be voted on before the end of the year.
|