Cyprus Mail

Cyprus remains in recession, pace of decline levels (Update)

Cyprus’  economy remained stuck in recession in the third quarter of the year, flash data showed on Friday, with the pace of decline flattening out because of a mild yearly increase in tourism revenue.

Output on the bailed-out island nation contracted by 0.4 percent in the third quarter from the second, revised to a fall of 0.4 percent from an earlier reported 0.3 percent.

On a yearly basis, GDP fell 2.0 percent compared with 2.2 percent in the second quarter.

Cyprus  has been recording negative rates of growth since the third quarter of 2011, and was the recipient of a 10 billion euro aid package from the EU and the IMF in early 2013.

Authorities expect the recession to be narrower than 3.0 percent for the whole of 2013, and a return to growth of about 0.5 percent next year.

While tourism and trade were performing well in the third quarter, the rate of growth in annual tourism revenue tapered off in August – the last available data – to 2.8 percent compared to more than 6 percent in July.

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