Cyprus starts to climb out of recession in Q4

The Cyprus economy appears to have started clambering out of recession in the fourth quarter, according to the latest flash estimate figures from the Statistical Service.
In the fourth quarter GDP fell in real terms by just 0.3% (seasonally adjusted basis), having fallen by 0.8% in the third quarter and a much steeper 1% in the second.
However, compared with the same period of the previous year, growth contracted by 2.7%–steeper than the 2.5% recorded in the third quarter.
GDP growth for the full year has not yet been reported but on the basis of the quarterly figures a contraction of around 1.5% is likely to be reported.
The Statistical Service reported that the contraction of the economy during the fourth quarter of 2009 was mainly attributed to “the very negative growth rates” of construction and hotels and restaurants, as well as the negative performance of manufacturing, retail and wholesale trade, and transport activities.
It said that the broad services sector was the only sector that recorded a positive growth rate, owing to financial intermediation (banking).