Cyprus quarterly GDP growth inches up in Q2

Cyprus just clinged onto growth in the second quarter, with seasonally adjusted GDP growth rising in real terms by 0.4% over the previous quarter in April-June according to the Statistical Service’s ‘flash estimate’.
Cyprus clambered out of recession in the first quarter with a q/q growth rate of 0.3%.
The Statistical Service said that the apparent improvement was mainly seen in banking activities and the (other) services sector, as well as the improved performances for the rest of the economy.
Tourism and Trade showed “encouraging results” while it said that there were also signs of improvement for the first time in construction.

Growth is still negative when compared with the year earlier, however.
In the second quarter of 2010, real GDP growth on a seasonally adjusted basis declined by 0.2% compared with the same period of 2009.
Nevertheless, this was a milder decline than the 1.4% recorded in the first quarter.

Fiona Mullen, Sapienta Economics Ltd