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Cyprus economy grows by 3.9% in second quarter of 2018

August 14, 2018 at 12:20pm
By August 14, 2018 No Comments

According to the Flash Estimate compiled by the Statistical Service, the GDP growth rate in real terms during the second quarter of 2018 is estimated at +3.9% over the corresponding quarter of 2017, the Finance Ministry said on Tuesday.

Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at +3.9%, it added.

The increase of the GDP growth rate is mainly attributed to the sectors: “Hotels and Restaurants”, “Retail and Wholesale Trade”, “Construction”, “Manufacturing”, “Professional, scientific and technical activities” and “Administrative and support service activities”. Negative growth rate was recorded by the sector “Financial and Insurance Activities”.

Commenting on the news, Finance Minister Harris Georgiades said that the growth was the result of hard work of the productive sectors of the country and confirmation that Cyprus remains on a stable path with positive prospects.

“Unemployment is now below the European average, available income, private consumption and investments are gradually increasing while the recent decisive steps as regards out banking system have boosted confidence and led to three consecutive upgrades from rating agencies,” he said.

“We must collectively and responsibly continue this effort,” he added.

Moreover, government spokesman Prodromos Prodromou said said the flash estimate confirmed the economy is showing accelerated growth and it was realistic to expect a growth rate of more than 4% for the whole year 2018.

He also said that this is the 14th consecutive quarter of growth since 2015 .

Prodromou added that the growth allows Cyprus to absorb unemployment and move on to a full employment  track.

Concluding, the Spokesman noted that the government’s prudent economic policy must continue and that along with stability, this will favour development initiatives.