ECONOMY: Cyprus annual GDP growth remains robust at 3.2% in Q2

The economy remains strong, said Finance Minister Harris Georgiades but warned there are still weaknesses and risks after Cyprus posted annual GDP growth of 3.2% in Q2.

In a statement, Georgiades said the “growth of the Cyprus economy for the fifth year, remains strong, with a rate of growth of 3.4% for the first quarter and 3.2% for the second quarter of 2019.”

He said this creates jobs and opportunities while proving the doubters wrong.
However, he pointed out that despite the significant growth in the past years, there are still internal weaknesses and external risks.

According to a flash estimate, GDP growth rate in real terms during Q2 2019 is estimated at 3% over  Q2 2018. Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at +3.2%.

The increase of the GDP growth rate was mainly attributed to the sectors of construction, information and communication, professional, scientific and technical activities, administrative and support service activities and arts, entertainment and recreation.

Financial and insurance activities recorded a negative growth rate.

Nevertheless, Cyprus has one of the fastest rates of quarterly GDP growth in the EU in Q2 2019.

Seasonally adjusted GDP rose by 0.2% in both the euro area (EA19) and in the EU28 and by 0.7% in Cyprus during Q2 2019, compared with the previous quarter, according to a flash estimate published by Eurostat.

In Q1 2019, GDP had grown by 0.4% in the euro area 0.5% in the EU28, it was 0.7% in Cyprus and 0.2% in Greece (latest available data).

Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 1.1% in the euro area by 1.3% in the EU28 and by 3.2% in Cyprus in Q2 2019, after +1.2%, +1.6% and 3,5% respectively  in the previous quarter. GDP grew in Greece by 1.3%.

During Q2+ 2019, GDP in the United States increased 0.5% compared with the previous quarter (after +0.8% in Q1 2019). Compared with the same quarter of the previous year, GDP grew by 2.3% (after +2.7% in the previous quarter).