World Economy

Moody’s Sees Cypriot Strengths

Moody’s Sees Cypriot StrengthsMoody’s Sees Cypriot Strengths

Moody’s Investors Service expects the Cyprus economy to grow 1.5% in 2016 after growing 1.4% in 2015 ,with the government posting a fiscal deficit of 0.5% of economic output in 2016 and a 0.1% surplus next year, Yahoo reported. Moody’s, which upgraded Cyprus’s sovereign rating by two notches in November to B1, said that it considers the island’s “low-tax environment which supports business attractiveness” and “the strong implementation” of the 2013 bailout terms as credit strengths. On the other hand, the high debt level of the government, the banking sector and the households and the high level of non-performing loans are considered credit challenges.