Cyprus economy gathers momentum

Cyprus economy expanded by 3.3% year on year on seasonally adjusted data, marking the highest quarterly growth since the financial crisis of 2013, according to a flash estimate released today by Cystat, Cyprus’s statistical service.

Cyprus has been posting growth rate for eight consecutive quarters.

According to Cystat, the GDP growth rate in real terms during the first quarter of 2017 is estimated at 3.4% over the corresponding quarter of 2016. Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at 3.3%.

Growth is mainly attributed to the sectors of "Hotels and Restaurants", "Retail and Wholesale Trade", "Construction" and "Manufacturing". The Financial Service Activities continues to have negative effect on the economy, Cystat added.

Hit by severe financial crisis, Cyprus agreed with the EU and the IMF on a €10 billion financial assistance package to avert the collapse of the economy. Cyprus entered in the second quarter of 2011 in a recession cycle which continued until 2015. According to data released by Eurostat, Cyprus recorded the 7th highest GDP growth rate for the 1st quarter of 2017 in the European Union, in annual basis.

It is worth noting that all EU countries experienced growth in Q1 2017, both in annual and monthly basis, except for Greece (where GDP contracted by - 0.5% and -0.1% respectively)

According to Eurostat, seasonally adjusted GDP rose by 1.7% in the euro area and by 2.0% in the EU28 in the first quarter of 2017 compared with the same quarter of the previous year, after +1.8% and +1.9% respectively in the previous quarter.

In a quarterly basis GDP grew by 0.5% in both the euro area (EA19) and the EU28 during the first quarter of 2017, compared with the previous quarter. In the fourth quarter of 2016, GDP grew by 0.5% and 0.6% respectively.