Econ­omy re­cov­ers af­ter 3-year re­ces­sion

Financial Mirror (Cyprus) - - FRONT PAGE -

The econ­omy recorded a pos­i­tive growth rate for the sec­ond quar­ter in a row, sug­gest­ing that it has re­cov­ered from the three year re­ces­sion in which it had plunged in the fourth quar­ter of 2011.

The Sta­tis­ti­cal Ser­vice Cy­s­tat pub­lished on Tues­day growth data ac­cord­ing to which the econ­omy grew dur­ing the sec­ond quar­ter by 1.2% com­pare to the same quar­ter of 2014, hav­ing al­ready recorded a 0.2% growth rate in the first quar­ter of 2015.

The data con­firms a flash es­ti­mate for GDP growth in the sec­ond quar­ter an­nounced by Cy­s­tat on Au­gust 14.

This is the sec­ond quar­ter in a row the econ­omy recorded growth af­ter it cvon­tracted for 14 con­sec­u­tive quar­ters.

Based on sea­son­ally and work­ing day ad­justed data, GDP growth rate in real terms is es­ti­mated at +0.8%. The flash es­ti­mate had forecast a growth of 0.9% in the sec­ond quar­ter.

Com­pared to sec­ond quar­ter es­ti­mate.

Pos­i­tive growth rates were recorded in man­u­fac­tur­ing, trade, ho­tels and restau­rants, trans­port, com­mu­ni­ca­tion, the pro­fes­sional, sci­en­tific and tech­ni­cal ac­tiv­i­ties and ad­min­is­tra­tive and sup­port ser­vice ac­tiv­i­ties as well as the fi­nan­cial ser­vice ac­tiv­i­ties.

¡egative growth rates were recorded elec­tric­ity as well as the ac­tiv­i­ties of em­ploy­ers.

Sea­son­ally ad­justed GDP rose by 0.4% in both the euro area and the EU28 dur­ing the sec­ond quar­ter of 2015, the last by 0.5%, quar­ter, GDP grew in the con­firm­ing Cy­s­tat’s flash in con­struc­tion,

house­holds as com­pared with the pre­vi­ous quar­ter, ac­cord­ing to a sec­ond es­ti­mate pub­lished by Euro­stat.

In the first quar­ter, GDP grew by 0.5% in both ar­eas. Com­pared with the same quar­ter of the pre­vi­ous year, sea­son­ally ad­justed GDP rose by 1.5% in the euro area and by 1.9% in the EU28 in the sec­ond quar­ter of 2015, af­ter +1.2% and +1.7%, re­spec­tively, in the pre­vi­ous quar­ter.

GDP in­creased in all mem­ber states, ex­cept France where it re­mained sta­ble. The high­est growth com­pared with the pre­vi­ous quar­ter was in Latvia (+1.2%), Malta (+1.1%), the Czech Re­pub­lic, Spain and Swe­den (all +1.0%), fol­lowed by Greece and Poland (both +0.9%), Slo­vakia (+0.8%), Es­to­nia, Croa­tia, Lithua­nia, Slove­nia and the United King­dom +0.7%). The low­est growth rates were reg­is­tered in Nether­lands, Aus­tria and Ro­ma­nia (all +0.1%).

Mean­while, de­fla­tion­ary pres­sures con­tin­ued for the ninth month in a row in Au­gust, hav­ing started in De­cem­ber 2014, ac­cord­ing to the Har­monised In­dex of Con­sumer Prices pub­lished by Cy­s­tat.

Har­monised in­fla­tion fell in Au­gust by -1.9% com­pared to Au­gust 2014, when in­fla­tion was up by 0.8%. July recorded a de­fla­tion of 2.4%. Dur­ing the first eight months of 2015, har­monised in­fla­tion was -1.6% com­pared to the same pe­riod of 2014. (all the

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