Cyprus 'to see further economic growth'

Cyprus has been tipped to experience further economic growth this year, according to a media outlet.

The Financial Mirror reports that the Economic Intelligence Unit (EIU) is expecting its gross domestic product (GDP) to go up by 3.7 per cent.

However, it believes external financial issues such as the credit crunch, the weak British economy and the strong euro could slow down growth in 2009.

Indeed, the EIU has predicted that next year, the Mediterranean island's GDP will go up by 3.1 per cent.

However, Cyprus's tourism industry has been given a boost from the launch of a new service by British Airways.

The UK-based carrier has just started operating a direct service between London's Gatwick Airport and Paphos.

This should help encourage more holidaymakers and second home buyers to visit the country.

According to official government figures, the holiday industry generated £1.4 billion for the Cypriot economy in 2007.