Econ­omy grows 2.9% in 3Q, says Cy­s­tat

Financial Mirror (Cyprus) - - FRONT PAGE -

The econ­omy grew by 2.9% of GDP year-on-year in the third quar­ter of 2016, mark­ing eco­nomic growth for the sev­enth con­sec­u­tive quar­ter, the Sta­tis­ti­cal Ser­vice Cy­s­tat said in a flash es­ti­mate. Based on sea­son­ally and work­ing day adjusted data, GDP growth rate in real terms is es­ti­mated at 2.8%.

The in­crease in the GDP growth rate is mainly at­trib­uted to the sec­tors of “Ho­tels and Restau­rants”, “Pro­fes­sional, Sci­en­tific and Tech­ni­cal Ac­tiv­i­ties”, “Re­tail and Whole­sale Trade”, “Man­u­fac­tur­ing”, “Con­struc­tion” and “Trans­port”. Fi­nan­cial Ser­vice reg­is­tered neg­a­tive growth in the third quar­ter, Cy­s­tat added.

Ac­cord­ing to Euro­stat, sea­son­ally adjusted GDP rose by 0.7% in Cyprus dur­ing the third quar­ter of 2016, com­pared with the pre­vi­ous quar­ter.

In the sec­ond quar­ter GDP also grew by 0.8%. Com­pared with the same quar­ter of last year, sea­son­ally adjusted GDP rose by 2.8%, after ris­ing by 2.6% in the sec­ond quar­ter.

Mean­while, GDP growth was 0.3% in the euro area (EA19) and 0.4% in the EU28 dur­ing the third quar­ter of 2016, com­pared with the pre­vi­ous quar­ter. In the sec­ond quar­ter of 2016, GDP also grew by 0.3% and 0.4% re­spec­tively. Com­pared with the same quar­ter of the pre­vi­ous year, sea­son­ally adjusted GDP rose by 1.6% in the euro area and by 1.8% in the EU28 in the third quar­ter of 2016, after +1.6% and +1.8% re­spec­tively in the pre­vi­ous quar­ter.

“The third quar­ter growth rate is a sig­nif­i­cant de­vel­op­ment, but we should not al­low pop­ulism and de­nial to ob­struct the road of eco­nomic re­cov­ery,” said Fi­nance Min­is­ter Har­ris Ge­or­giades.

“The an­nounce­ment of an­other quar­ter of strong growth of 2.9% GDP rep­re­sents a par­tic­u­larly pos­i­tive de­vel­op­ment,” Ge­or­giades said in a state­ment, point­ing out that es­sen­tially all pro­duc­tive sec­tors are con­tribut­ing to the eco­nomic re­cov­ery.

Not­ing that through col­lec­tive ef­fort Cyprus has beaten ev­ery fore­cast, Ge­or­giades said that “how­ever, we have road to cover and we should not al­low pop­ulism and de­nial ob­struct the course of re­cov­ery.”

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