World Economy

Cyprus Growth Continues

Cyprus Growth ContinuesCyprus Growth Continues

The economy of Cyprus grew 0.7% in the three months to September, official figures showed late Tuesday, in the seventh consecutive quarter of expansion for the bailed-out eurozone member.

The quarter-on-quarter increase follows rises of 0.8% in April-June and 0.7% in the first three months of the year, said the statistical service, AFP reported.

 “Another quarter of strong growth ... is an especially positive development,” Finance Minister Harris Georgiades said.

“But we have a way to go ... Only through growth and recovery will new jobs be created, and better living standards achieved,” he was quoted as saying in a statement.

Cyprus has emerged from more than three years of economic slowdown after the government imposed harsh austerity measures in exchange for a European Union and International Monetary Fund bailout.

In return for €10 billion ($13 billion at the time), it agreed in March 2013 to wind down its second-largest bank, Laiki, and impose losses on depositors in under-capitalized top lender Bank of Cyprus.

The growth in the latest quarter was achieved on the back of expansion in manufacturing, construction, trade, hotels and restaurants, transport and technical activities, said the statistical service. But there was a contraction in financial services.

On an annual basis, gross domestic product rose 2.8% in the third quarter.

In March this year, the Eurogroup of finance ministers praised Cyprus for its successful exit of the bailout program.

A recent survey by the University of Cyprus predicted the economy would grow by 2.9% in 2016 and 3.2% next year.


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