EU foresees ease of recession in

South Cyprus

Flag South CyprusSouth Cyprus’ deep recession has eased after it entered a harsh adjustment program 11 months ago, according to European Commission data made available in Nicosia on Tuesday.

The commission said the South Cypriot gross domestic product (GDP) is expected to have contracted 6.0 percent last year, 2.7 percentage points less than predicted.

A further 4.8 GDP contraction is expected this year but a modest positive growth of 0.9 percent is predicted for 2015.

The European Commission warned that there are still dangers ahead should reduction of the growing sovereign debt proved difficult.

It also warned that growth expectations could be dampened on account of rising unemployment, which is expected to climax to 19.2 percent this year from about 16 percent in 2013, before going down to 18.4 percent in 2015.

The Republic of Cyprus pins its hopes for a quicker and more pronounced economic recovery on large deposits of natural gas and possibly oil in its offshore exclusive economic zone.

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