2009 GDP Estimate Minus 1.7%
In 2009, Cyprus saw negative GDP growth of -1.7 percent in current prices with total income amounting to 16.9 billion euros compared to 17.2 billion euros in 2008, said the Cyprus Statistical Service (CYSTAT).
Government spending is estimated at around 20 percent of total GDP at 3.36 billion euros, rising from 3 billion euros in 2008, when GDP growth was 8.6 percent.
The latest estimate comes amid an announcement last night that President Demetris Christofias and members of the Cabinet volunteered to take a pay cut of 10 percent in efforts to cut government spending. Cyprus' economy has been in recession since the second quarter of 2009 following weaknesses in the Tourism and Construction sectors amid a worldwide recession. Other MPs are set to follow Christofias' example and pledged to cut their own salaries by 10 percent.