Cyprus has started licking its wounds in the aftermath of the coronavirus pandemic as damage to its economy are becoming evident as GDP shrank 11.9% in the second quarter.
Data released by the statistical service give the first indications of the size of the bombshell, as Cyprus’ annual GDP shrunk by €800 mln in Q2 2020 to €4.8 bln, compared to last year’s €5.6 bln generated.
Cyprus’ Gross Domestic Product decreased to €4.802 bln in the second quarter from the €5.247 bln in Q1, recording quarterly losses of €445 mln.
Activity in major sectors such as tourism, trade, and construction, considered a barometer for the country’s economical growth, were essentially shut down in the wake of the coronavirus outbreak in March.
The retail and wholesale sectors, services such as vehicle repairs and the hospitality and food services industry took the biggest hits.
These sectors contributed €809.36 mln to GDP in the second quarter compared to €1 bln in the first quarter, the annual losses were €429 mln.
The entertainment, leisure and arts sectors were also hit hard by the lockdown with their GDP shrinking significantly.
Specifically, in the second quarter, their contribution stood at €580 mln from €659 mln in the first quarter.
Compared to the same period last year the difference was €199 million.
In the field of information and communication, GDP remained almost stable.
In Q2 2020, the sector generated €301.07 mln down from €308.10 mln in Q1 while compared to last year, there was a small increase of €9 mln due to the lockdown.
Meanwhile, the reduction in consumer spending was also going in the wrong direction.
For the second quarter, it was reduced to €4 bln from €4.6 bln in January-March and €4.2 bln in April-June 2019.