Cyprus Electricity blow-out leads to GDP Q3 decline

** Previous quarters revised down **

The destruction of Cyprus’ main power station on July 11th as a result of an armaments blast pushed the economy into recession in the third quarter according to the flash estimate.
GDP declined in seasonally adjusted terms by 0.7% compared with the previous quarter (0.6% not seasonally adjusted) and by 0.6% compared with the same period of 2010.
The Statistical Service said that negative growth rates were recorded in construction, manufacturing, electricity), and the trade and transport sectors.
Positive growth rates were recorded for tourism, banking and public services.
The overall growth rate for the year will be depressed by the fact that the growth rates in the first two quarters were revised down.
The first quarter showed a 0.3% decline over the previous quarter in Q1, whereas the previous estimate put the growth rate at zero.
Quarterly growth in the second quarter is now estimated at 0.2%, compared with 0.3% in the previous quarter.