Cyprus economy set to keep growing

Wednesday July 9th , 2008

Cyprus's economy is likely to keep growing over the next few years, experts have predicted.

According to the Economic Intelligence Unit (EIU), the island's gross domestic product (GDP) should go up by 3.7 per cent this year, reports the Financial Mirror.

However, the organisation believes economic problems overseas could potentially have a knock-on effect on sectors such as tourism.

For example, the EUI has raised concerns about the slowdown in the British economy and the resulting impact on tourism and the second home market.

As a result, it has predicted that GDP growth should slow down to 3.1 per cent in 2009.

This coincides with the launch of new flights to Cyprus from the UK by British Airways.

The service between London's Gatwick Airport and Paphos could potentially boost the tourism industry as it shows that demand for flights to the island is still high among Britons.