Business services sector down 2.2% soon after crisis in 2013

The business services sector saw a negative growth rate of 2.2% in 2013, the year of the financial crisis when the Troika of international lenders bailed out the island economy.

The Statistical Service Cystat said that during the same year, employment in the sector decreased by 6.7%

“The value added of the sector at current market prices decreased by 4% to EUR 3.8 bln in 2013, compared to 3.96 bln in 2012. The sector’s contribution to gross value added was 24.5% in 2013, compared to 24.1% in 2012, the Service said.

Of the total value added, 51.9% was generated by the real estate activities, 24.2% by professional, scientific and technical activities, 18.1% by information and communication activities and 5.8% by administrative and support service activities.

According to the report, employment in the business services sector decreased by 6.7% in 2013 compared to the previous year to 39,287 persons, accounting for 9.5% of the total gainfully employed population.

The report said that the gross fixed capital formation in 2013 decreased by 31.6% compared to 2012 and reached EUR 524.8 mln. Investment in new buildings accounted for 453.1 mln, machinery and equipment for 59.7 mln, furniture for 8.4 mln and transport equipment for 3.6 mln.