Cyprus construction activity less robust than thought

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Construction activity in Cyprus was less robust than initially thought in 2007, according to the second provisional estimate for gross domestic product (GDP) issued by the Statistical Service Cystat.

Although the overall growth rate remains that same, at 4.4% compared with 4.0% in 2006, Cystat has made various adjustments to the components following the receipt of various short-term indicators.

Gross value added in construction was revised down from 5.7% to 5.0% in 2007, compared with 6.0% in 2006.

By contrast, gross value added for the wholesale and retail trade sector was revised up from 5.5% to 5.9%, compared with 5.2% in 2006.

On the demand side, the government’s pre-election spending could be behind an upward revision to government final consumption expenditure, from a contraction of 1.5% according to initial estimates to a contraction of only 0.1% in the revised version.

GDP for the whole year is provisionally estimated at €15,490.2 mln at current prices compared with €14,393.6 mln in 2006.

At constant 2000 prices (chain-linking method), it is estimated at €12,576.3 mln compared with €12,050.7 mln in 2006.