ECONOMY

Cyprus economy shrinks 0.4 pct in Q3

Cyprus’s recession-hit economy contracted by 0.4 percent in the third quarter, matching the drop of the previous three months, official figures showed on Friday.

It was the 13th successive negative quarter for the Mediterranean island’s battered economy, according to a flash estimate from the state statistical service, which also revised the second-quarter drop to 0.4 percent from its initial estimate of 0.3 percent.

The eurozone economy is still showing its slowest rate of decline since the first quarter of 2012.

The latest estimate shows that real GDP, based on seasonally and working-day adjusted data, shrank 2 percent in the July-September quarter from a year earlier.

In April-July the economy contracted 2.2 percent.

International lenders have revised down their contraction forecast for this year from 4.8 percent to 4.2 percent.

The Cyprus economy contracted 5.4 percent in 2013.

Due to bad debt and high unemployment, hovering at around 17 percent, lenders have cut their projections for recovery next year from 0.9 percent to 0.4 percent.

The state statistical service said on Friday there were positive growth rates in hotels, restaurants, legal and accounting services, and trade.

But there was negative growth in many other sectors, including construction, manufacturing, transport, banking and other services.

[AFP]