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Cyprus Q2 GDP growth spikes 12.9%

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The annual seasonally adjusted GDP growth rate is estimated at 12.9% for the second quarter of 2021, a huge improvement on the 2.1% shrinkage in the previous three months.

It is the first time the Cyprus economy has been in positive territory for 15 months, since Q1 2020, according to the Statistical Service.

This is the first quarter in which a positive growth rate was recorded after the onset of the COVID-19 pandemic.

The first quarter of 2020 was the last time there was GDP growth with 1.1%.

A large drop of 12.6% followed the first national lockdown in Q2 2020, while GDP had a negative trend for the next three quarters.

The positive GDP growth rate in Q2 is mainly attributed to the unlocked sectors of Hotels and Restaurants, Construction, Manufacturing, Trade, Entertainment and Recreation.

The EU Commission forecasts that the Cyprus economy will recover by over 4% GDP growth in 2021, in line with Nicosia’s estimate.