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Finance Minister Analyzes Government Economic Policy
2008-03-27 09:47:00

Nicosia, Mar 24 - The Government is examining ways to restructure and increase productivity in the public sector, Minister of Finance, Charilaos Stavrakis, has told the Parliamentary Committee on Finance.

Analyzing the economic policy of the government, Mr. Stavrakis said that inflation is expected to decline from 4,9%, which is today, to around 3% - 3.5% by the end of this year, while the budget balance will show a surplus of 0.5% in 2008.

During a meeting with the House Finance Committee, the Minister outlined the priorities on public expenditure, including those relating to development projects.

“Our primary objective is to sustain high rates of economic growth, which will contribute to conditions for a just social state,” he said.

The Minister said that all economic indicators are very high, saying that inflation is expected to decline from 4.9%, which is today, to 3% - 3.5% by the end of the year, despite inflationary pressure on the economy, due mainly to external factors and global recession.

At the same time, he said the rate of growth- which has dropped to 3.5% - 4%, will remain among the highest in Europe.

On the budget surplus, he said «we have promised that in 2008 we will have 0,5% surplus in the budget balance.”

He also expressed optimism about maintaining conditions of full employment and said that the government is looking into ways to restructure and increase the productivity of the public service Commenting on the offshore business, Minister Stavrakis stated that: “Offshore activity is perhaps the most important sector in the country's economy and we need to make great efforts to improve the situation.”

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