Construction and tourism fuelled economy in 2019

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The construction and tourism sectors were the driving forces behind Cyprus’ economic growth in 2019, while the banking sector continued shrinking, according to official data.

According to data released by the Cyprus Statistical Service, the GDP for 2019 is estimated at €21.9 bln at current prices compared to €21.14 bln in 2018.

Cyprus’ economy grew by 0.8% in the fourth quarter of 2019, compared to the previous quarter. It has been five years since the economy retreated into negative territory.

Construction contributed €1.52 bln to GDP increasing by €180.5 mln compared to 2018.

The wholesale and retail sector, which includes hotels and restaurants, recorded an increase of 2.7% compared to the previous year. This sector’s contribution to the economy rose to €4.6 bln from €4.5 in 2018.

In 2019 revenue from tourism is estimated at €2.6 bln compared to €2.7 bln in the corresponding period of 2018, recording a decrease of 1%.

In December alone revenue from tourism reached €54.6 mln from €56,4 mln in the same month of the previous year, recording a decrease of 3.2%.

Expenditure per person for December dropped to €494.67 compared to €528.95 in the same month of the previous year, recording a decrease of 6.5%.

Expenditure per person/per day for December decreased by 1.2% (from €56.88 to €56.21).

A decline of 5,4% was also recorded in the average length of stay, from 9.3 days in December 2018 to 8.8 days in December 2019.

Public administration’s contribution to economic growth rose by €99.3 mln to €3.9 bln.

On the other hand, financial and insurance activities saw a negative growth of €75 mln.

The sector of professional, scientific and technical activities contributed €1.9 bln from €1.82 bln.

In addition to banks, the mining and quarrying sector also had a reduced contribution to economic growth.