Cyprus scrambles out of recession in Q1 2010
Cyprus officially declared out of recession in the first quarter of 2010 contrary to earlier estimates showing a sixth consecutive quarter of decline.
According to the latest data from the Statistical Service Cystat, The revised data show that GDP in the first three months of the year rose in real terms by 0.1% over the previous quarter, having declined by 0.3% in the fourth quarter of 2009. However, the early flash estimate published in May estimated the GDP to have declined by 0.2% over the previous quarter in the Q1 and by 0.8% in the Q4.
According to the revised figures real GDP decline compared with the previous year was milder as a result of these revisions. Cystat reported that there was positive growth in banking activities and certain other services sectors, as well as improved relative performance in tourism, distributive trade and industry.
In good news for property investors in Cyprus, the island’s Central Bank said that Cypriot economy is expected to contract by 0.5 percent in 2010 but rebound in 2011 with growth of 1.3 percent. The Central Bank in its semi-annual report said its latest forecasts were in line with an expected drop-off in domestic demand and a slowdown in construction and tourism this year. Its previous forecast, issued in Dec. 2009, had Cyprus registering growth of 0.3 percent this year and 1.8 percent in 2011.
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