New Market Study Published: Cyprus Business Forecast Report Q3 2014

Cyprus' major economic headwinds and ongoing territorial dispute with Turkey will remain dominant themes in policy-making over the coming years. Austerity measures and several years of economic decline could increase social tensions and give rise to marginalised political undercurrents, while efforts to develop offshore mineral resources are set to raise tensions with Turkey within a delicate geopolitical context.

Cyprus appears to be past the worst of its brutal recession. Nonetheless, we do not forecast annual economic expansion until 2016, as credit growth remains impaired, public austerity deepens, and the internal devaluation process keeps a lid on nominal and real wages.

Full Report Details at
- http://www.fastmr.com/prod/807648_cyprus_business_forecast_report_q3_2014.aspx?afid=301

Although the Cypriot government's fiscal consolidation plan will begin bearing fruit by 2015-16, with a reduced deficit, a budget surplus is unlikely to be posted anytime soon. With slow economic growth ahead and chronic budget deficits, it is likely that Cyprus's debt sustainability will be called into question again at some point in the next few years.

Major Forecast Changes

We have revised our 2014 real GDP growth forecast to -4.0% from -5.3%.

We changed our nominal budget deficit forecast for 2014 from 4.4% of GDP to 5.0%.

Key Risks To Outlook

Given the sharp decline in major categories of expenditure, particularly fixed investment, there is the potential for a stronger rebound than we are currently pencilling in over the next two years. We reiterate, however, that the economy and the components of expenditure are likely to remain well below their peaks in real terms for several years to come.

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Oman and Yemen Business Forecast Report Q3 2014
- Kuwait Business Forecast Report Q3 2014
- Serbia, Montenegro and Kosovo Business Forecast Report Q3 2014
- Brazil Business Forecast Report Q3 2014
- Chile Business Forecast Report Q3 2014