The Dutch Disease: What is it and how could it affect Cyprus

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The Dutch Disease is a phenomenon that occurs when oil is an overvalued asset within a jurisdiction and other industries within the economy suffer due to lack of resources or too much emphasis on oil production and trade. There have been ongoing discussions over the potential framework for the administration of the soon-to-be found natural gas reserve off the coast of Cyprus. The general aim is to avoid the Dutch Disease effect as much as possible, by limiting outlooks using realistic goals rather than base spending on projections.