The Cyprus economy is running at a high rate of growth, at an estimated 3.6% in the second quarter of 2017, compared with the corresponding quarter of 2016.
After GDP and seasonal fluctuations, the growth rate of the economy is estimated at 3.5%, compared to 3.7% in the first quarter of the year. The percentage change on a quarterly basis was 0.9%.
Finance Minister Harris Georgiades recently said that 2017 would close at a rate of growth close to 3.5%, noting that initially government estimates were more conservative, at about 2.9%.
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Most sectors of the economy continue to register positive growth, with the exception of the financial and insurance sector (banking and insurance), which has a negative growth rate.
Financial and insurance contributions show a decline of €19.2 million or -3.1% on an annual basis and indicate the serious problems still faced by the domestic banking system.
The Statistical Service of the Republic on Friday announced the latest data on the development of the Cypriot economy. The strengthening of the economy is mainly due to the dramatic growth recorded by the tourism industry (hotel-food industry activities) and the increase in tourism.
Secondly, the high speed of the economy is driven by commerce, wholesale and retail, in construction and manufacturing.
Overall, the GDP at constant prices stood at € 8,107.9 million in the first half of the year, recording an increase of € 279.1 million compared to the same period last year.
Statistics show that trade activity (wholesale and retail), which also includes hotels and restaurants, recorded an annual increase of 4.3%. More specifically, the sector’s contribution to the economy stood at €1,843.9 million from €1,767.6 million in the first half of 2016, recording an annual increase of €76.3 million
The construction sector also rose, contributing €359.6 million to GDP, an increase of €66.5 million.
The contribution of the public administration amounted to €1,546.8 million and represents an annual increase of €43 million. The sector of professional, scientific and technical activities contributed €712.7 million from €687.3 million in the second quarter of the year, (corresponding period 2016), recording an increase of €25.4 million.
Finally, the contribution of the mining and manufacturing industries is growing, recording an annual growth of €18.5 million.