Cyprus recession deepens in Q3

Cyprus moved deep into recession in the third quarter according to the latest “flash” estimates of gross domestic product (GDP) produced by the Statistical Service.
GDP is estimated to have declined by 1.4% compared with the previous quarter—it’s steepest decline since quarterly GDP started to be recorded.
Moreover, GDP in the second quarter was also revised down, to a decline of 0.8%, after a previous estimate of a 0.5% contraction.
Compared with the same quarter of 2008, GDP is estimated to have dropped by 2.7% on a seasonally adjusted basis, after a 1% contraction in the second quarter.
On a non-seasonally adjusted basis, GDP fell by 2.9%.
Cyprus has not recorded a full year’s GDP decline since 1975, the year after the Turkish invasion.
The Statistical Service said that contraction of the economy during the third quarter of 2009 was mainly owing to the very negative growth rates in construction and hotels and restaurants as well as the negative performance of manufacturing, retail and wholesale trade, and transport activities.
Financial intermediation activities (banking) as well as the broad services sector continue to record positive growth rates but at a decelerating rate.
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