Crisis: Cyprus jobless is increasing faster, EU report

18 September, 16:39

    (ANSAmed) - NICOSIA, SEPTEMBER 18 - Cyprus's unemployment increased at a faster pace than anticipated under its bailout program and constitutes a serious challenge for the future, the European Commission said on Wednesday as local media reported quoting Bloomberg. The jobless rate will increase to 19.5% in 2014 from 17% this year, the European Union's Bruxelles-based executive arm said in its assessment of Cyprus's compliance with the terms of its aid plan. That compares with an April forecast for unemployment to rise to 16.9% next year from 15.5% in 2013.

    Cyprus, the third-smallest economy in the 17-nation euro area, got approval for a 1.5 billion-euro payout by euro-region finance ministers on September 13. It was the second disbursement under a 10 billion-euro rescue program following the country's financial meltdown mainly as a result of banking losses on Greek government bonds. The commission said in its report on Wednesday that Cyprus's economic adjustment program remains on track, while there are substantial risks as the country's economic outlook remains uncertain. Gross domestic product is forecast to contract 8.7% this year and 3.9% in 2014, before growth returns in 2015. (ANSAmed).

    © Copyright ANSA - All rights reserved

    Business opportunities

    The information system of business
    opportunities abroad

    News from Mediterranean