Cyprus Mail
Business Cyprus

Cyprus’ recession loses steam as trade and tourism pick up

Cyprus’ economic slump eased in the second quarter as tourism and trade picked up although the island, which was forced to secure an international bailout last year, remained in recession.

Gross domestic product dipped by a seasonally adjusted 0.3 per cent in the second quarter from the previous three months, one of the shallowest declines recorded since the economy began contracting in mid-2011, preliminary data released by the island’s statistics office on Thursday showed.

On an annual basis, the economy shrank 2.5 per cent in April to June, compared to a revised 3.9 percent contraction in the first three months of this year.

The island  has not posted economic growth since the second quarter of 2011.

The tourism and trade sectors grew in the second quarter, after declining in the previous quarter, the statistics office said. The manufacturing, construction, banking and transport sectors all contracted.

Tourism arrivals rose 6.0 per cent in the first six months of 2014 compared to a year earlier, according to the statistics office.

Cyprus’ international lenders from the International Monetary Fund and the European Union expect the economy to contract by about 4.2 per cent this year, after shrinking 5.4 per cent in 2013. (Reuters)

 

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