CYPRUS: GDP economic growth reached 3.9% in Q2

Buoyed by record tourist arrivals and a resurgence in construction Cyprus notched up 3.9% GDP growth in the second quarter of 2018, official data showed Tuesday.

The economy has registered 14 straight quarters in positive territory since Q4 2014.

Seasonally adjusted data showed that 0.8% Q2 growth was slightly down from the 1% increase in the previous quarter while year-on-year the economy grew 3.9% in Q2 (April-June) against 4% in Q1 (January-March).

The Cyprus statistical service reported positive growth rates in manufacturing, trade, hotels and restaurants, construction and support service activities.

There was negative growth in the sector of Financial and Insurance Activities.

In a written statement Finance Minister Harris Georgiades said that the economy’s sound growth is a result of hard work, while constituting a confirmation that through tough decisions “Cyprus remains on a track of stability and positive prospects.”

“It is our duty, collectively and responsibly, to continue this effort,” said Georgiades.

The increase to GDP growth rate is mainly attributed to the sectors: "Hotels and Restaurants", "Retail and Wholesale Trade", "Construction", "Manufacturing", "Professional, scientific and technical activities" and "Administrative and support service activities".

The government said the data shows that its forecast of economic growth above 4% for 2018 is proving to be correct.

Cyprus exited a three-year recession in 2015 that was triggered by a banking crisis and near economic meltdown.

The Mediterranean island's economy almost collapsed in 2013 but it has remained in positive territory from Q1 2015 and is one of the fastest growing economies in Europe.

The troika of international lenders — the European Commission, European Central Bank and International Monetary Fund — bailed out Cyprus for 10 billion euros in March 2013 to prevent a banking collapse.