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Inflation, Unemployment Expected To Rise 2011

orphanidesThe rates of inflation and unemployment are expected to rise during 2011, said Cyprus Central Bank director Athanasios Orphanides in his projections on the economy.

Throughout the whole of 2011, the labour market will continue to be affected by the economic crisis of 2010, and the employment rate is expected to decline by 2 percent, he said.

Employment throughout 2011 and 2012 will be very much below the average rate for 2006, according to the projections.

Inflation is expected to rise to 3.4 percent for the full-year 2011, mainly due to price rises in food and pharmaceuticals. For the period January - November 2010, inflation rose to 2.6 percent compared to the same period in 2009.

On the positive side, GDP growth for 2010 is expected to reach 0.7 percent, and more recovery is expected in 2011, when GDP growth is expected to be 1.8 percent. GDP growth for 2012 is expected to be 2.4 percent, according to the Central Bank's projections.

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