Cyprus-Forum.com

[Paphitis]

Cyprus and Australia top sorry lot of economies

27th April 2009, 15:00 WST

Cyprus rarely makes the news. But it’s name is up in lights — and for just one really good reason. When the International Monetary Fund released its latest dire forecasts for the global economy last week, there was only one country in the developed world expected to enjoy growth through this year.

And that country was Cyprus.

The IMF reckons the island nation of about 850,000 people will grow 0.3 per cent this year and 2.1 per cent next year.

Why, when every other country in the developed is going backwards, is this speck of a place growing?

The Cyprus High Commission highlighted its financial links to the Middle East (it had grown into a financial centre since the fall of Lebanon in the 1970s), its strong tourism industry and the “balanced” way the place is run.

“It has been sane,” one official said. “We don’t have exposure to those sub-prime mortgages.”

But even in this economic oasis, growth of just 0.3 per cent is pretty poor. It is just that in comparison to the rest of the world, it’s startlingly good.

Which brings us to Australia, which is predicted to contract 1.4 per cent this year before pumping out an absolutely underwhelming 0.6 per cent in 2010.

Frighteningly, Australia’s figures put it as the second strongest developed economy over the next two years behind Cyprus.

It could be worse. Much worse.

Bottom of the table is Ireland. The Celtic Tiger’s economy will be cut down to nothing more than a stray cat, after three consecutive years of negative growth (minus 2.3 per cent, minus 8 per cent, minus 3 per cent).

Unemployment is tipped to climb to 7.8 per cent in Australia by next year. That equates to at least an extra 250,000 people out of work, although based on the IMF’s own growth forecasts this might be light by 100,000 people or so.

Again, there’s much worse beyond Australia’s shores.

Unemployment is tipped to reach a mind-boggling 19.3 per cent in Spain, 13 per cent in Ireland and be firmly in double-digit territory in the US, Germany, France, Italy, Belgium, Greece, Portugal and the Slovak Republic.

In other words, almost a third of the developed world will suffer 10 per cent plus unemployment. (It’s better, again, in Cyprus where unemployment is tipped to peak at 4.6 per cent.)

Ah, to be in Cyprus.

SHANE WRIGHT ECONOMICS EDITOR

http://www.thewest.com.au/default.aspx? ... tID=138338

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Stand tall and proud Cyprus, you are shoulder to shoulder with the big boys now...

[Get Real!]

The financial sector has grown enormously in the last 5 years or so, because many wealthy Arab countries like Oman, Qatar, UAE, Bahrain, etc, view Cyprus as a neutral bridge between East and West, and have been happily investing their funds with us.

In fact, many Arab politicians refuse to meet up with their Western counterparts unless the meeting is held in neutral Cyprus! Our constant assistance to our sister country Lebanon during her many troubled times, and in conjunction with our support of the Palestinian struggle has helped us establish a very good reputation over the decades, as an Arab friendly country.

[Paphitis]

The financial sector has grown enormously in the last 5 years or so, because many wealthy Arab countries like Oman, Qatar, UAE, Bahrain, etc, view Cyprus as a neutral bridge between East and West, and have been happily investing their funds with us.

In fact, many Arab politicians refuse to meet up with their Western counterparts unless the meeting is held in neutral Cyprus! Our constant assistance to our sister country Lebanon during her many troubled times, and in conjunction with our support of the Palestinian struggle has helped us establish a very good reputation over the decades, as an Arab friendly country.

So how does Australia also manage to weather the worldwide meltdown with her "less" friendly relations to those nations you mentioned when compared to Cyprus?

BTW, I disagree with you because Australia has excellent bilateral relations with ALL of the nations you mention.

[Get Real!]

The financial sector has grown enormously in the last 5 years or so, because many wealthy Arab countries like Oman, Qatar, UAE, Bahrain, etc, view Cyprus as a neutral bridge between East and West, and have been happily investing their funds with us.

In fact, many Arab politicians refuse to meet up with their Western counterparts unless the meeting is held in neutral Cyprus! Our constant assistance to our sister country Lebanon during her many troubled times, and in conjunction with our support of the Palestinian struggle has helped us establish a very good reputation over the decades, as an Arab friendly country.

So how does Australia also manage to weather the worldwide meltdown with her "less" friendly relations to those nations you mentioned when compared to Cyprus?

Australia is the closest western nation to many Asian countries so she gets a lot of attention from them, and they do see her as an Asian-friendly country although that’s debatable!

BTW, I disagree with you because Australia has excellent bilateral relations with ALL of the nations you mention.

Australia's participation in Iraq & Afghanistan, and frequent condemnation of Iran, has hampered her Arab relations from what they used to be in the 80s, but it was a decision she willingly made to please the US. You may recall back in 1990/91, when there were huge debates taking place as to whether Australia should go to Iraq at the risk of having huge sheep exports cut off etc.

[DT.]

The financial sector has grown enormously in the last 5 years or so, because many wealthy Arab countries like Oman, Qatar, UAE, Bahrain, etc, view Cyprus as a neutral bridge between East and West, and have been happily investing their funds with us.

In fact, many Arab politicians refuse to meet up with their Western counterparts unless the meeting is held in neutral Cyprus! Our constant assistance to our sister country Lebanon during her many troubled times, and in conjunction with our support of the Palestinian struggle has helped us establish a very good reputation over the decades, as an Arab friendly country.

We are considered the Arabs plumbers when it comes to their money...i'e we store, help them transfer it etc etc.....We're not there yet in getting them to trust us managing it....but thats slowly changing.

[Sotos]

This is because Cyprus didn't have the wild uncontrolled capitalism like most other developed countries. We were more conservative with our money and this means more stability and less ups and downs.

[Paphitis]

The financial sector has grown enormously in the last 5 years or so, because many wealthy Arab countries like Oman, Qatar, UAE, Bahrain, etc, view Cyprus as a neutral bridge between East and West, and have been happily investing their funds with us.

In fact, many Arab politicians refuse to meet up with their Western counterparts unless the meeting is held in neutral Cyprus! Our constant assistance to our sister country Lebanon during her many troubled times, and in conjunction with our support of the Palestinian struggle has helped us establish a very good reputation over the decades, as an Arab friendly country.

So how does Australia also manage to weather the worldwide meltdown with her "less" friendly relations to those nations you mentioned when compared to Cyprus?

Australia is the closest western nation to many Asian countries so she gets a lot of attention from them, and they do see her as an Asian-friendly country although that’s debatable!

BTW, I disagree with you because Australia has excellent bilateral relations with ALL of the nations you mention.

Australia's participation in Iraq & Afghanistan, and frequent condemnation of Iran, has hampered her Arab relations from what they used to be in the 80s, but it was a decision she willingly made to please the US. You may recall back in 1990/91, when there were huge debates taking place as to whether Australia should go to Iraq at the risk of having huge sheep exports cut off etc.

I have absolutely no idea what the hell you are on but Australia's trade with Asian and Middle Eastern countries is approaching a trillion dollars in goods and services.

The sheep trade with Iraq is chicken feed compared to the many Billions worth of trade with Saudi Arabia, UAE, China, India and Japan.

Australia makes no decision to please the US, but has been a victim of international terrorism in the past which is the reason for the nation's policy on Afghanistan. It was Al Qaeda and Jamaah Islamiyah that declared war on Australia in Bali and now they are paying for their sins.

Australia has excellent ties with all Arabic, Middle Eastern and Asian nations except for North Korea, and Iran. And this has not hampered relations with other nations at all. The UAE is about to sign a multi billion dollar defence contract for Australian Surveillance platforms as well.

[RichardB]

You world finanacial geniuses (geniui?) can debate this as much as you want.

But its quite obvious if it were not for massive investment from the citizens of the british protectorate of Peyia and the sale of cooked english breakfasts on the harbour that Cyprus would be no where near the position it is today

[Paphitis]

Australia is the closest western nation to many Asian countries so she gets a lot of attention from them, and they do see her as an Asian-friendly country although that’s debatable!

What's debatable about it?

Australia is a very friendly nation to everyone and invests copious amounts of money into Asian economies. Things could not be better apart from the fact that our economy is slowing down but still regarded as indestructible in the face of the global meltdown. A few people are losing their jobs but things are not that bad. Our resources, and defence sectors are keeping us afloat.

BTW, when is Cyprus going to ask Australia for assistance with regards to your massive illegal immigration problem. We can consult your on building some concentration camps and on other torture techniques. Your immigration woes will be solved overnight....

[Paphitis]

You world finanacial geniuses (geniui?) can debate this as much as you want.

But its quite obvious if it were not for massive investment from the citizens of the british protectorate of Peyia and the sale of cooked english breakfasts on the harbour that Cyprus would be no where near the position it is today

I have nothing to say apart from the fact that Peyia better win the Cyprus Coca Cola Cup or else.