Economy still growing, latest stats say

CYPRUS’ economy grew for the third quarter running, data showed yesterday, but less quickly than expected as a resurgence in tourism and banking was offset by continued weakness in the island’s construction industry.

Gross domestic product grew 0.6 per cent in the third quarter from the second and accelerated to a year-on-year rise of 1.7 per cent from the second quarter’s 0.4 per cent, the statistics department said.

The headline figure fell short of finance ministry estimates of 0.8 per cent.  “The improvement… may be attributed to the improved performances … in tourism, transport, trade and banking activities,” the statistics department said in a statement. Construction still remained negative, however.

Tourism, which accounts for about 12 per cent of the Cypriot economy, saw a 1.2 per cent increase in arrivals in the first 10 months of the year. Arrivals fell 10.9 per cent in a recession-scarred 2009.

The island is the second smallest economy in the euro zone, with its €16.9 billion GDP representing about 0.2 per cent of total economic output.

 

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