The economy grew by 2.9% of GDP year-on-year in the third quarter of 2016, marking economic growth for the seventh consecutive quarter, the Statistical Service Cystat said in a flash estimate.
Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at 2.8%.
The increase in the GDP growth rate is mainly attributed to the sectors of "Hotels and Restaurants", "Professional, Scientific and Technical Activities", "Retail and Wholesale Trade", "Manufacturing", "Construction" and "Transport".
The sector of Financial Service Activities registered negative growth in the third quarter, Cystat added.
According to Eurostat, seasonally adjusted GDP rose by 0.7% in Cyprus during the third quarter of 2016, compared with the previous quarter.
In the second quarter GDP also grew by 0.8%. Compared with the same quarter of last year, seasonally adjusted GDP rose by 2.8%, after rising by 2.6% in the second quarter.
Meanwhile, GDP growth was 0.3% in the euro area (EA19) and 0.4% in the EU28 during the third quarter of 2016, compared with the previous quarter. In the second quarter of 2016, GDP also grew by 0.3% and 0.4% respectively. Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 1.6% in the euro area and by 1.8% in the EU28 in the third quarter of 2016, after +1.6% and +1.8% respectively in the previous quarter.
“The third quarter growth rate is a significant development, but we should not allow populism and denial to obstruct the road of economic recovery,” said Finance Minister Harris Georgiades.
“The announcement of another quarter of strong growth of 2.9% GDP represents a particularly positive development,” Georgiades said in a statement, pointing out that essentially all productive sectors are contributing to the economic recovery.
Noting that through collective effort Cyprus has beaten every forecast, Georgiades said that “however, we have road to cover and we should not allow populism and denial obstruct the course of recovery.”
“New jobs, new opportunities and the improvement of the standard of living of our fellow citizens will only come through growth and recovery,” he concludes.
