articles | 04 June 2024

Cypriot GDP hits €6.59 billion in first quarter — construction sector boom contributes to economic growth

The Cypriot economy grew by 3.4 per cent in the first quarter of 2024 compared to the same period in 2023, with the construction sector showing the largest increase at 10.2 per cent, according to a report released this week by the Cyprus Statistical Service.

Specifically, the growth rate of the economy for the first quarter of 2024 is estimated at 3.5 per cent compared to the same quarter of 2023. However, after adjusting the gross domestic product (GDP) for seasonal variations and working days, the growth rate is calculated at 3.4 per cent. The GDP at the end of the first quarter of 2024 amounted to €6.59 billion.

Regarding the production approach for calculating GDP, the positive growth rate is mainly attributed to the sectors of hotels and restaurants, construction, information and communications, wholesale and retail trade and repair of motor vehicles, and arts, entertainment and recreation, repair of household goods and other activities. More specifically, according to the data, the sector of wholesale and retail trade, repair of motor vehicles and motorcycles, transport and storage, and accommodation and food service activities, which includes hotels and restaurants, contributed €1.39 billion to the GDP. This represents an increase of 3.7 per cent compared to the first quarter of 2023 and 0.7 per cent compared to the previous quarter.

The construction sector contributed €0.38 billion, showing an increase of 10.2 per cent compared to the same quarter last year and 4.9 per cent compared to the fourth quarter of 2023.The information and communications sector contributed €0.67 billion to the GDP in the first quarter of 2024, marking an annual increase of 4.4 per cent and a 1.3 per cent increase compared to the fourth quarter of 2023. The arts, entertainment and recreation, repair of household goods and other activities sector contributed €0.21 billion, showing an increase of 2.1 per cent compared to the first quarter of 2023 but a decrease of 2.7 per cent compared to the fourth quarter of 2023.

A negative impact on the GDP was noted in the financial and insurance activities sector, which contributed €0.45 billion to the total amount, recording a decrease of 1.1 per cent in the first quarter of 2024 but an increase of 0.4 per cent compared to the fourth quarter of 2023. The sector of public administration and defence, compulsory social security, education, human health and social work activities contributed €1.11 billion, with an annual increase of 3.2 per cent and a quarterly increase of 1.8 per cent.

In terms of GDP measured by volume adjusted for seasonal variations and working days, the total final consumption expenditure of households and non-profit institutions serving households in the first quarter of 2024 amounted to €4.09 billion. This represents an increase of 3.8 per cent compared to the first quarter of 2023 and an increase of 0.4 per cent compared to the previous quarter.

Finally, the total expenditure of the general government amounted to €1.23 billion, marking an increase of 3.7 per cent compared to the first quarter of 2023 and 2.7 per cent compared to the fourth quarter of 2023.

Source: Cyprus Mail

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