Nicosia, Jan 15: The GDP of the eastern Mediterranean island of Cyprus grew by 4.6 per cent in the third quarter of 2007 compared to the same quarter of 2006-higher than the 4.3 per cent initially estimated by Eurostat.
This was well above the 2.7 per cent and 3 per cent average in the euro area in the same period.

Figures released by the Eurostat covering the 27 European Union member states show that the euro area and EU27 GDP both grew by 0.8 per cent in the third quarter of 2007, compared with the previous quarter. In Cyprus the GDP grew by 1.2 over the previous year.

Cyprus's EU harmonised inflation rate rose to 3.7 per cent year-on-year in December from 3.2 per cent in November, the island's statistics department said last week. Consumer inflation has been gradually increasing on the back of a surge in fuel and grain prices on international markets.

Meanwhile, according to the EU Economic and Monetary Affairs Commissioner Joaquin Almunia Cyprus's entry into the eurozone as from January 1 has been successful.

"The transition from the Cyprus pound to the euro was very smooth both in relation to absolute number s and in relation to other countries," Almunia said.

It should be noted that that Moody's has upgraded the foreign and local currency government bond rating of Cyprus to Aa3, up one notch from A1, following the country's entry into the eurozone.

Malta, which also adopted the euro on January 1 also saw its ratings rise one notch to A1 from A2.

The country ceilings for debt and bank deposits of both countries were also withdrawn and replaced with eurozone's regional Aaa ceilings, which have a stable outlook. (ANI)