Cyprus economy sees growth slowdown to 2.1 per cent in second quarter

The Cypriot economy experienced a notable deceleration in its growth rate during the second quarter of 2023, with GDP growth slowing to 2.1 per cent compared to the same period in 2022.

This marks a significant slowdown from the 3.1 per cent growth recorded in the first quarter of the current year and the 4.6 per cent growth in the fourth quarter of 2022 on an annual basis, according to a report released on Friday.

After adjusting GDP for seasonal fluctuations and working days, the annual growth rate eased to 2.3 per cent during the second quarter of 2023, down from 3.2 per cent in the first quarter of 2023 and 4 per cent in the fourth quarter of 2022, on an annual basis.

On a quarterly basis, after seasonal and working day adjustments, GDP shrank by 0.4 per cent in the second quarter of 2023 compared to the first quarter of the same year.

In the first quarter of the current year, GDP had expanded by 1.1 per cent when compared to the fourth quarter of 2022.

The GDP for the second quarter of 2023 reached €6.15 billion.

The Statistical Service attributed the positive growth rate for Q2 2023 mainly to sectors including Hotels and Restaurants, Transportation and Storage, Information and Communications, Wholesale and Retail Trade, Repair of Motor Vehicles, Arts, Entertainment, and Recreation, and Other Service Activities.