Economy in Cyprus Will Grow to 1.5% in 2016
- Written by: Bridgewest
- Posted: 2016-02-18
Foreign investors interested in opening a company abroad should know that Cyprus offers very good prospects, as the local economy is expected to grow in 2016 to 1.5%. This marks an improvement, as in 2014, the economy increased by 1.4%. Another important aspect related to the economic development in Cyprus is that Moody’s, the credit rating agency, has upgraded the country’s ranking to B1. If you want to find out more details about the local business market, our law firm in Cyprus can offer you assistance on this matter.
Economic development in Cyprus
Businessmen who want to open a company in Cyprus can benefit of a stable financial market, as the country’s credit rating has been recently changed to B1 by Moody’s credit rating agency. The B1 rating is given to countries which have a stable market and which run a low risk of not being able to pay its debts.
The most important reasons for which the credit rating awarded to Cyprus was upgraded were the following:
• Cyprus attracts local and foreign investors by applying a low taxation system;
• the state implemented with success the bailout terms in 2013.
The credit rating agency mentioned that Cyprus has a stable legal system, as the rule of law is imposed by a healthy institutional system. Furthermore, the agency revealed that Cyprus has a high ranking for the government effectiveness index; our lawyers in Cyprus can offer you further information on this subject.
Economy in Cyprus
Forecasts issued by the Directorate General for Economic and Financial Affairs are showing that in 2017 the Gross Domestic Product will further grow, up to 2%. In terms of unemployment, Cyprus will mark significant improvements, as in 2015 the level of unemployment was set at 15.5% and projections for 2016 set the unemployment at 14.5%, while for 2017, the rate will be even lower, forecasted at 13.2%.
Entrepreneurs interested in the business market in Cyprus should know that the country has made notable improvements in the field of trade legislation, property rights and business freedom.
If you need further information on the local business opportunities, please contact our attorneys in Cyprus, who can offer you assistance on this matter.