Economy grows 2.9% in Q3, Cystat says (Update-1)

Cyprus’s economy expanded an annual 2.9 per cent in the third quarter of the year after growing 2.8 per cent in the second quarter, the statistical service said citing a provisional estimate.

The economy grew a seasonally adjusted 2.8 per cent in July to September compared to the respective period of 2015 and 0.7 per cent compared to the previous quarter, Cystat said in a statement on its website on Tuesday.

The economy received a boost from the hospitality industry, professional, scientific and technical activities, retail trade and wholesale, manufacturing, construction and transport which more than offset the negative contribution to growth of financial intermediaries, Cystat said.

Finance minister Harris Georgiades said that that the news was a “particularly positive development”. Harris Georgiades“Essentially all the Cypriot economy’s productive sectors are already contributing to recovery,” Georgiades said. “It is clear that through collective effort we proved many people wrong”.
The minister added that Cyprus should not allow populism obstruct its recovery, which will ultimately help generate new jobs and improve people’s standard of living.

The Cypriot economy, which recorded a positive growth rate for the seventh consecutive quarter in September is expected to expand at a rate close to 3 per cent this year. It emerged from a prolonged recession in 2015, recording 1.7 per cent growth.