articles | 08 September 2017

Cyprus GDP growth up 0.9% in Q2 2017

The economy of bailed-out eurozone member Cyprus recorded 0.9% growth in second quarter 2017, official data showed recently.

GDP grew 0.9% in the second quarter of 2017, marginally down on the 1% in the previous three months (January-March) and 0.8% in the quarter before that, Cyprus’ statistical service said.

The estimate showed it was the tenth consecutive quarter in positive territory and the last time GDP was in decline was Q2 2014.

Second-quarter growth (seasonally adjusted) was up 3.5% from a year earlier but lower than the 3.7% in the first quarter of 2017.

The statistical service figures showed growth in manufacturing, construction, trade, hotels and restaurants.

There was negative growth in financial and insurance activities.

Cyprus has recovered from a crippling financial crisis after the government imposed harsh austerity measures in exchange for a European Union and International Monetary Fund bailout four years ago.

In return for €10 billion ($13 billion at the time), Cyprus agreed in March 2013 to wind down its second-largest bank, Laiki, and impose losses on depositors in under-capitalised top lender Bank of Cyprus.

Cyprus’ GDP growth for 2016 was 2.8% and a similar growth rate is expected for 2017 buoyed by an anticipated increase in tourism revenue.

The holiday island’s economy has been boosted by a record tourist arrivals and income from tourism.

Source: InCyprus

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