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5.3% GDP Q3 growth confirms robust economy

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The high 5.3% GDP growth in Q3 2021 confirms the strength of the Cypriot economy, reinforcing expectations for a positive outlook in Q4, the Finance Ministry said.

According to preliminary estimates of the Cyprus Statistical Service, the economy’s growth rate in Q3 is estimated at 5.3% compared to Q3 2020, following a very high growth rate of 13.3% in Q2 2021.

It is the second successive quarter in positive territory since -2.1% GDP in Q1.

According to the Ministry, the Q3 rate “is one of the highest among the EU Member States and above the average of the eurozone and the EU, which is 3.7% and 3.9% respectively”.

The Ministry points out, “the high growth rates confirm the strength of the Cypriot economy, reinforcing expectations for the continuation of positive outlook in the 4th quarter of 2021”.

Performance in the first nine months “is very close to the forecasts of the Ministry of Finance for the whole of 2021, and it is estimated the Cypriot economy in 2021 will accelerate with a growth rate of at least 5.5%”.

“With a growth rate close to 5.5% for 2021, the Cypriot economy will be one of the few economies in the European Union, whose rate will exceed the losses of 2020,” it is added.

The Ministry said a rational economic policy and prudent implementation of the National Recovery and Resilience Plan; the Cypriot economy will achieve and maintain economic activity and employment at the high rates recorded before the pandemic.

The Q3 GDP growth rate is mainly attributed to the sectors of Hotels and Restaurants, Manufacturing, Transport, Storage and Communication, Trade, Arts, Entertainment and Recreation.