Ge­orghi­ades: Q3 growth at 3.9%

Financial Mirror (Cyprus) - - FRONT PAGE -

Fi­nance Min­is­ter Haris Ge­orghi­ades said that the econ­omy grew 3.9% in the third quar­ter of the year, equal to a re­vised sec­ond quar­ter growth rate of 3.9%, he told a par­lia­men­tary brief­ing.

The growth rate for 2015 was 2%, ris­ing to 3% in 2016 and on tar­get for a 4% rate this year, the min­is­ter told MPs, adding that Cyprus recorded the sec­ond high­est growth rate in the Euro­zone and one of the high­est in the EU.

“This pos­i­tive growth per­spec­tive de­rives from all the pro­duc­tive sec­tors of our econ­omy,” Ge­orghi­ades said, ex­plain­ing that this was not the re­sult of un­rea­son­able spend­ing but “of the good per­for­mance of the pro­duc­tive sec­tors of the econ­omy and these pro­duc­tive forces we must con­tinue to sup­port to move for­ward”.

“We still have a way to go and there is no room for com­pla­cency, in­stead we should con­tinue the ef­fort with the same in­ten­sity”, he said.

The data fol­lows fig­ures re­leased by Euro­stat in Brus­sels that showed a sea­son­ally ad­justed GDP rise of 0.9% on a quar­terly and 3.9% on an an­nual ba­sis dur­ing the third quar­ter.

At the same time, Cy­s­tat said that Cyprus gen­er­ated the high­est 9-month bud­get sur­plus since 2008, the year it joined the Euro­zone.

For the Jan­uary-Septem­ber pe­riod, the gen­eral gov­ern­ment gen­er­ated a sur­plus of EUR 429.2 mln, mark­ing a 200% in­crease com­pared with the re­spec­tive pe­riod of 2016 due to a sig­nif­i­cant rise in pub­lic rev­enue amid ro­bust growth rates.

Ac­cord­ing to pre­lim­i­nary Cy­s­tat es­ti­mates, the third quar­ter gen­eral gov­ern­ment gen­er­ated a sur­plus of EUR 366.7 mln com­pared to a sur­plus of EUR 185.8 mln in the re­spec­tive pe­riod last year.

To­tal rev­enue amounted EUR 2,023.2 mln, up 11.8% from the cor­re­spond­ing pe­riod of 2016, whereas to­tal ex­pen­di­ture rose by 2.0% to EUR 1,656.5 mln.

Rev­enue from taxes rose by 10% year-on-year to EUR 769 mln. Rev­enue from VAT amounted to EUR 466.9 mln, an in­crease of 14%, whereas taxes on in­come and wealth amounted to EUR 633.2 mln, up 13.6% from the Jan­uarySeptem­ber pe­riod of 2016.

So­cial con­tri­bu­tions rose by 10.9% in the nine-month pe­riod to EUR 403.3 mln, rev­enue from sales of goods and ser­vices reached EUR 127.4 mln, an in­crease of 20.4% com­pared to the cor­re­spond­ing pe­riod of the last year, while so­cial spend­ing in Jan­uary-Septem­ber 2017 rose by 2.4% to EUR 584.1 mln, while com­pen­sa­tion of em­ploy­ees, in­clud­ing im­puted so­cial con­tri­bu­tions and pen­sions of civil servants, amounted to EUR 545.2 mln, an in­crease of 4.1%.

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