Cyprus economy slows for fifth straight quarter

The Cyprus economy seems to be sliding, with quarterly economic growth in Cyprus slowing for the fifth consecutive quarter in January-March, according to the latest flash estimate from the Statistical Service.
On a seasonally adjusted basis, real GDP growth over the previous quarter was zero in the first quarter of 2011, down from 0.4% in the fourth quarter and 0.6% in the third.
This was slower than the EU average, which recorded a growth rate of 0.8%.
The quarterly growth rate has been declining since the first quarter of 2010.
The picture looks more positive on a year on year basis. Here, Cyprus recorded a seasonally adjusted growth rate of 1.7%, down from 2.6% in the fourth quarter.
On a non-seasonally adjusted basis growth was 1.8%, down from 2.5% in the previous quarter.
A full breakdown of figures will come in a few weeks but the Statistical Service noted that construction and manufacturing continue to be in decline, while positive growth rates were recorded for retail and wholesale trade, tourism, banking and services (public administration, education, health and other services).
Fiona Mullen
www.sapientaeconomics.com