Data released by the European Commission indicates that the economic recession in Cyprus is expected to ease this year. The European Commission stated that Cyprus's Gross Domestic Product (GDP) contracted by 6% last year, is projected to contract by 4.8% this year, and is expected to grow by 0.9% in 2015.
Cyprus is currently pinning its hopes for economic recovery on natural gas and potential oil exploration. After conducting exploration in a block within the Exclusive Economic Zone of Cyprus, the U.S.-based Noble Energy company discovered that the natural gas reserves there are at least 3.5 trillion cubic feet.
Due to the economic crisis, Cyprus reached a 10 billion euro bailout agreement with the Eurogroup and the International Monetary Fund in March of last year. Under this agreement, the Cypriot government is required to implement very stringent austerity measures, including reducing public sector wages and pensions, increasing taxes, and cutting welfare benefits.
