Cyprus: GDP expands strongly in the second quarter
The economy rebounded robustly in the second quarter, albeit flattered by a favorable base reading, with GDP expanding 12.8% year-on-year. This followed the first quarter’s 2.0% contraction.
Although a full breakdown is not yet available, growth should have been driven by the hotels and restaurants sector as the easing of movement restrictions boosted the tourism industry. Moreover, the construction, manufacturing, transport, storage and communication, and wholesale and retail trade sectors likely supported the reading.
However, underlying momentum seemingly lost a step as the economy expanded a meager 0.2% over the prior quarter in Q2, down from the first quarter’s 1.7% expansion.
More detailed national accounts data will be released on 31 August.