Cyprus & World News

CYPRUS: President hails highest growth rate since 2013

17 May, 2017

President Nicos Anastasiades hailed the continued growth of the Cypriot economy, which, he noted, exceeded all expectations and reached 3.3%.

The economy expanded by an annual 3.3% on seasonally adjusted data, marking the highest quarterly growth since the financial crisis of 2013, according to a flash estimate released by the statistical service Cystat.
In a statement, the President expresses his satisfaction which is shared by all, because “through the collective effort and sacrifices of our people we achieve the gradual restoration of the full recovery and the success of our goals.”
He also noted that current developments show that persistence and consistency in a sound fiscal policy, the trust in the necessary reforms, attracting investment, strengthening the country’s international credibility are the only feasible components that create the conditions of stability, security and prospect for the future.
“At the same time, the growth recorded, creates the necessary conditions to gradually and effectively address the problems that the economic crisis has caused to our people,” he added.
He assured the nation that the government will continue with the same determination, so that the country does not return to the unpleasant conditions of the past.
On his part, Finance Minister Harris Georgiades pointed out that achieving a growth rate of 3.3% in the first quarter of 2017 had surpassed all expectations, noting at the same time the need to hold a steady course.
“We have an obligation to our fellow citizens to hold a steady course with collective efforts and credible policies, to fully cover the lost ground,” said the Minister.
According to Eurostat, Cyprus recorded the seventh highest GDP growth rate on an annual basis for the first quarter of 2017 in the European Union. GDP growth for Q1 2017 was 3.3% year-on-year and 0.6% on a quarterly basis.
Eurostat said all EU countries experienced growth in Q1 2017, both on an annual and monthly basis, except for Greece where GDP contracted by -0.5% and -0.1% respectively.
Seasonally adjusted GDP rose by 1.7% in the euro area and by 2.0% in the EU28 in the first quarter of 2017, compared with the same quarter of the previous year, after +1.8% and +1.9%, respectively, in the previous quarter.
On a quarterly basis, GDP grew by 0.5% in both the euro area (EA19) and the EU28 during the first quarter of 2017, compared with the previous quarter. In the fourth quarter of 2016, GDP grew by 0.5% and 0.6% respectively.
According to Cystat, the GDP growth rate in real terms during the first quarter of 2017 is estimated at 3.4% over the corresponding quarter of 2016. Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at 3.3%.
Growth is mainly attributed to the sectors of "Hotels and Restaurants", "Retail and Wholesale Trade", "Construction" and "Manufacturing". The Financial Service Activities continues to have negative effect on the economy, Cystat added.