Cyprus COVID-ravaged economy plunged an estimated 11.9% of annual GDP in the second quarter of 2020 as it tried to contain the pandemic.
Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at -11.9% according to a Flash Estimate announced by the Statistical Service (CyStat) on Friday.
Quarter on quarter, the GDP decline was 11.6% from -1.3% in Q1 when the economic lockdown had only just begun in mid-March.
Negative GDP growth is mainly attributed to the sectors of Hotels and Restaurants, Manufacturing, Construction, Transport, Storage and Communication, Wholesale and Retail Trade, Repair of Motor Vehicles, Arts, Entertainment and Recreation.
“The implementation of precautionary measures and relevant decrees to address the negative consequences of COVID-19 had a direct impact on the Cyprus economy which exhibited a slowdown during the first quarter of 2020 and a substantial decrease during the second quarter.
The preventive measures applied, amongst others, was the restriction of movement and the closure of businesses leading to a significant decrease in the second quarter,” CyStat said.
Due to the “unprecedented situation” the Statistical Service had to make some assertions for the short-term indicators used.
“These imputations were based on information collected from sources other than those used for the usual production of Flash Estimate (such as the weekly credit cards transactions and the preliminary results of the Labour Force Survey).
Due to limitation of data sources, resulting from the pandemic, future revision of the forecast may be of a greater magnitude than usual (positive or negative).
In Q2, with COVID-19 containment measures still in place in most Member States, seasonally adjusted GDP decreased by 12.1% in the euro area, 11.7% in the EU and by 11.6% in Cyprus compared with the previous quarter, according to Eurostat.
These were by far the sharpest declines observed since time series started in 1995.
In Q1 2020, GDP decreased by 3.6% in the euro area and by 3.2% in the EU, 1.3% in Cyprus and 1.6% in Greece.
Compared with the same quarter of the previous year, seasonally adjusted GDP decreased by 15% in the euro area, -14.1% in the EU and by 11.9% in Cyprus in Q2 after -3.1% -2.5% and +0.8% for Cyprus respectively in Q1. The drop in Greece was 0.9%.
These were also by far the sharpest declines since time series started in 1995.
During Q2, 2020, GDP in the United States decreased by 9.5% compared with the previous quarter (after -1.3% in Q1, 2020).
Compared with the same quarter of the previous year, GDP decreased by 9.5% (after +0.3% in the previous quarter).
The number of employed decreased by 2.8% in the euro area and by 2.6% in the EU in Q2 2020, compared with the previous quarter.
These were the sharpest declines observed since time series started in 1995.
In Q1 2020, employment had decreased by 0.2% in the euro area and by 0.1% in the EU.