NICOSIA, Dec. 9 (Chinese media) -- Increased public spending and other fiscal expansionist measures will be the most efficient tool for Cyprus to maintain relatively high economic growth among European Union countries, the island state's finance minister said on Tuesday.
Charilaos Stavrakis told a bank employees' meeting that whatever the forecast growth rate for 2009 would be, "the remedy is the same, that is, a fiscal expansionist policy which will strengthen the economy."
He recalled that the newly presented 2009 budget provides for increased government spending especially in the construction sector, one of the driving forces of the Cypriot economy.
Cyprus government has earmarked 1.09 billion euros for public construction projects, increased by 15.5 percent when compared to 2008. Most of the 30 projects are new roads.
Cyprus' central bank governor Athanasios Orphanides predicted earlier this month that the Cypriot economy would only increase by two percent in 2009 due to the impact of the global financial crisis.
The GDP growth of the Mediterranean island state in 2008 is estimated at 3.5-3.75 percent.
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