Cyprus growth accelerates in Q4

2010 growth probably around 0.9%
Economic growth in Cyprus accelerated in the fourth quarter of 2010 compared with the year earlier according to the latest Flash Estimate compiled by the Statistical Service.
Gross domestic product (GDP) is estimated to have risen in real terms by 2.1% over the corresponding quarter of 2009, compared with 1.9% in the third quarter and only 0.5% in the second.
One reason was the low baseline: growth contracted by 2.9% over the year earlier in the fourth quarter of 2009.
On seasonally and working day adjusted basis, the real GDP growth rate is estimated at 2.2%, compared with 1.8% in the third quarter.
One slight note of caution was the deceleration compared with the previous quarters. Growth rose in seasonally adjusted terms by 0.3% over the previous quarter, down from 0.8% in the third quarter and 0.6% in the second.
The Statistical Service said that relative to previous quarters, growth is mainly attributed to the improved performances for tourism, transport, trade and banking activities.
The broad services sector also continued to show positive results, while construction and manufacturing were still negative.
According to Sapienta Economics estimates based on the quarterly figures, the growth rate for the whole of 2010 was around 0.9%.
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