articles | 14 May 2015

Cyprus growth welcome, but fragile, admits Finance Minister

The Minister of Finance, Harris Georgiades, welcomed Cyprus’ return to growth recently, but warned that the recovery remains fragile.

According to the flash estimate produced by the Statistical Service, Cystat, Cyprus recorded its first year-on-year growth rate in three and a half years in the first quarter, with a seasonally adjusted real GDP growth rate of 0.2%.

On a non-seasonally adjusted basis, real GDP rose year on year by 0.4%.

Compared with the previous quarter, real GDP leapt by 1.6%, after a 0.4% contraction in the fourth quarter.

The Statistical Service said that positive growth was recorded by the sectors of trade, hotels and restaurants, communication, electricity, education, health as well as legal and accounting activities.

Νegative growth rates were recorded in mining, manufacturing and construction.

“After 14 consecutive quarters of negative rates, growth has been recorded… This is certainly a significant development that confirms the positive outlook for the Cyprus economy,” said Georgiades in a statement.

However, perhaps with an eye to reforms that have yet to be implemented, he cautioned about celebrating too early.

“At the same time though, we must note that we still have a way to go. The recovery is in its early stages and thus remains fragile”. “For this reason the joint effort to reform and consolidate of our economy must continue, avoiding both celebration and negativity, but with confidence that we will succeed.”

Source: InCyprus

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