Free Submission Public Relations & NewsPR-inside.com
Home
Deutsch English

Finance
Cyprus Business Forecast Report Q1 2013

Cyprus Business Forecast Report Q1 2013 - new country guide report published


Print article Print article
© companiesandmarkets.com

companiesandmarkets.com
companiesandmarkets.com
2012-12-14 14:11:12 - Cyprus Business Forecast Report Q1 2013 - a new country guide report on companiesandmarkets.com

Opposition leader Nicos Anastasiades is the favourite to succeed current President Demetris Christofias in the February 2013 election.

He will, however, inherit a country in crisis. The strength of his mandate will depend on his ability to form a working majority with coalition partner, the Cypriot Democrat Party (DIKO).

The ´Cyprus Problem´ remains far from resolved as President Demetris Christofias ends his term in office. If Anastasiades is triumphant in the February 2013 election, dialogue could resume, though there is little to suggest a breakthrough on the horizon.

The new government will be required to manage a multi-year economic adjustment programme imposed by the ´troika´ of international lenders (EU, ECB, IMF). This is likely to involve unpopular wage and job cuts that could

 

 

cause social unrest.

The offshore gas fields discovered in the Eastern Mediterranean offer positive economic benefits that could be realised towards the end of our 10-year forecast period. At the same time, geopolitical tensions, particularly with Turkey, could delay the exploitation of these hydrocarbon resources.

Major Forecast Changes

We have lowered our forecast for government spending in 2014 and 2015, based on an expectation that the austerity package that will be agreed with the troika will be executed over several years.

We now forecast public consumption growth at -1.0% in 2014 and 0.5% in 2015.

Though there is still uncertainty over the size and format of the EU bailout, the revised estimates for the support required has prompted us to upwardly revise our public debt forecasts. We now estimate gross general government debt at 86.5% of GDP by end-2012, soaring to 110% in 2013, when the bulk of the extra borrowing is likely to occur.

Key Risks To Outlook

The delay of an agreement with the troika over the terms of the requested bailout has increased uncertainty at a time when upcoming elections already cause political risk. A last minute deal brokered with the incumbent Christofias government could have an influence on the policy direction of the incoming administration from February.

Even with financial support, the banking system remains vulnerable to more bad news concerning its Greek holdings. A further external shock could tip the financial sector over the edge, with devastating consequences for the wider economy.

Click for report details: www.companiesandmarkets.com/Market/All-Sectors/Country-Guide/Cyp ..

Browse all All Sectors Country Guide Reports www.companiesandmarkets.com/Market/All-Sectors/Country-Guide?aCo ..

Browse all All Sectors Company Profile Reports www.companiesandmarkets.com/Market/All-Sectors/Company-Profile?a ..

Browse all Latest Country Guide Reports www.companiesandmarkets.com/Market/All/Country-Guide?aCode=f3fb3 ..

About Us
Companiesandmarkets.com is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles, Companiesandmarkets.com’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.


Author:
Mike King
e-mail
Web: www.companiesandmarkets.com
Phone: London: +44 (0) 203 086 8600

Disclaimer: If you have any questions regarding information in these press releases please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims contents contained in this release.
Latest News
Read the Latest News
www.newsenvoy.com

 


Terms & Conditions | Privacy | About us | Contact PR-inside.com | BidVertiser