Skip to Content

Key To Growth is Investment - Finance Minister

The Minister of Finance Charilaos Stavrakis has called on business persons to start investing to boost the real economy, which slipped into recession as of the second quarter of this year.

“The very big and unexpected reduction on the private consumption has created a negative growth rate of the economy during the second quarter of 2009”, said Mr. Stavrakis.

Next Friday, the first government’s official forecasts for 2010 regarding unemployment, growth rate, inflation, and public finances will be released.

“While the public investments and consumption recorded a considerable increase of 10%, and especially in the sectors of public constructions, the private sector has shown a considerable shrinkage on consumption, despite the fact that the incomes of the private sector have increased by 5%," he said.

Consumption is the biggest contributor to Gross Domestic Product (GDP), he said, adding that private consumption restraint is caused by market’s bad psychology, the already existing over-lending of households, the high lending interest rates, and the banks’ pressure.

No votes yet

Poll

Are the authorities doing enough to prosecute those accountable for Cyprus' financial crash?
Yes, but it takes time to find evidence
6%
No, they are not moving fast enough
75%
Don't know
19%
Total votes: 370