Nicosia: Moody’s Investors Service expects the Cyprus economy to grow 1.5 per cent in 2016 after growing 1.4 per cent in 2015 ,with the government posting a fiscal deficit of 0.5 per cent of economic output in 2016 and a 0.1 per cent surplus next year.
Moody’s, which upgraded Cyprus’s sovereign rating by two notches in November to B1, said that it considers the island’s "low-tax environment which supports business attractiveness" and "the strong implementation" of the 2013 bailout terms as credit strengths. On the other hand, the high debt level of the government, the banking sector and the households and the high level of non-performing loans are considered credit challenges.
The finance ministry forecast a 2 per cent growth rate for 2016.
QNA
