13/02/2015 12:41
The Cyprus economy contracted at a higher rate in the fourth quarter, contrary to expectations for a gradual recovery and boosting estimates for a continuation of the recession in 2015.
According to figures released today by Cystat and Eurostat, GDP growth rate in real terms is estimated at -1.9% yoy against -1.8% in the third quarter of 2014.
It is the first time after 5 quarters that the rate of economic contraction is accelerating.
According to Cystat, positive growth rates were recorded by the sectors of Trade, Hotels and Restaurants as well as the Legal and Accounting activities.
Νegative growth rates were recorded by the secondary sector of the economy (Manufacturing, Construction), as well as in the sectors of Banking, Transport and other Services.
The new Cystat data boost domestic analysts' estimates that the economy may shrink again in 2015 instead of recovering, as anticipated by the creditors and the government.
Creditors expect economic growth of 0.4% in 2015, but have not yet calculated the effects of the Russian crisis and the stagnation in the banking system.
The EBRD, which invested in 2014 in Cyprus, says in a report released today that the economy will grow by 0.7% in 2015.
According to Cystat, the economy contracted by 0.7% compared to the third quarter of 2014 against a 0.3% contraction in the previous quarter.
It is the 14th consecutive quarter that the Cypriot economy is shrinking.
EU
Economic activity in the European Union and the euro area shows a slight acceleration.
According to Eurostat data released today, seasonally adjusted GDP rose by 0.9% in the euro area and by 1.3% in the EU28 in the fourth quarter of 2014, after +0.8% and +1.3% respectively in the previous quarter.
Germany’s GDP grew by 1.5% against an increase of 1.2% in the third quarter of 2014 and France’s grew by 0.2% from 0.4% in the previous quarter.
Greece’s GDP grew by 1.7% against an increase of 1.6% in the third quarter.
On a quarterly basis, seasonally adjusted GDP rose by 0.3% in the euro area and by 0.4% in the EU28.
In the third quarter of 2014, GDP grew by 0.2% in the euro area and by 0.3% in the EU28.
The German economy grew by 0.7% qoq while that of France by 0.1%.
According to figures released today by Cystat and Eurostat, GDP growth rate in real terms is estimated at -1.9% yoy against -1.8% in the third quarter of 2014.
It is the first time after 5 quarters that the rate of economic contraction is accelerating. According to Cystat, positive growth rates were recorded by the sectors of Trade, Hotels and Restaurants as well as the Legal and Accounting activities.
Νegative growth rates were recorded by the secondary sector of the economy (Manufacturing, Construction), as well as in the sectors of Banking, Transport and other Services.
The new Cystat data boost domestic analysts' estimates that the economy may shrink again in 2015 instead of recovering, as anticipated by the creditors and the government.Creditors expect economic growth of 0.4% in 2015, but have not yet calculated the effects of the Russian crisis and the stagnation in the banking system.
The EBRD, which invested in 2014 in Cyprus, says in a report released today that the economy will grow by 0.7% in 2015.
According to Cystat, the economy contracted by 0.7% compared to the third quarter of 2014 against a 0.3% contraction in the previous quarter.
It is the 14th consecutive quarter that the Cypriot economy is shrinking.
EU
Economic activity in the European Union and the euro area shows a slight acceleration.
According to Eurostat data released today, seasonally adjusted GDP rose by 0.9% in the euro area and by 1.3% in the EU28 in the fourth quarter of 2014, after +0.8% and +1.3% respectively in the previous quarter. Germany’s GDP grew by 1.5% against an increase of 1.2% in the third quarter of 2014 and France’s grew by 0.2% from 0.4% in the previous quarter.
Greece’s GDP grew by 1.7% against an increase of 1.6% in the third quarter.
On a quarterly basis, seasonally adjusted GDP rose by 0.3% in the euro area and by 0.4% in the EU28.
In the third quarter of 2014, GDP grew by 0.2% in the euro area and by 0.3% in the EU28.
The German economy grew by 0.7% qoq while that of France by 0.1%.
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