Cyprus’ real GDP in the first quarter of 2024 grew by an annual 3.5% and by 3.4% in seasonally adjusted terms, with the Construction sector recording the highest both annual and quarterly percentage gains, according to data released by the Statistical Service of Cyprus (CyStat).

In its quarterly national accounts for the first quarter of this year, CyStat said the growth rate in real terms during the first quarter of 2024 is positive and it is estimated at 3.5% over the corresponding quarter of 2023. Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at 3.4%.

In output approach for the estimation of GDP, the positive growth rate is mainly attributed to the sectors "Hotels and Restaurants", "Construction", "Information and Communication", "Wholesale and Retail Trade, Repair of Motor Vehicles, "Arts, entertainment and recreation, repair of household goods and other services".

Constructions sector registers highest percentage change

According to the data published on output approach, the sector of Constuctions recorded the highest percentage change both on an annual as well as on quarterly basis with 10.2% and 4.9% respectively.  The sector of Professional, scientific and technical activities; administrative and support service activities followed with 4.8% year on year and a quarterly growth of 2.4%. Furthermore, the sector of Mining and quarrying; manufacturing; electricity, gas, steam and air conditioning supply; water supply; sewerage, waste management and remediation activities also registered annual growth of 4.8% albeit its quarterly performance was 1.6%.

Information and Communication Activities, a fast-growing sector of the Cypriot economy, in the first quarter of 2024 rose by an annual 4.4% with 1.3% compared with the previous quarter, whereas Wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities expanded by an annual 3.7% while registering quarterly growth of 0.7%.

On the other hand, Financial and Insurance Activities in the first quarter of the year declined by an annual 1.1%, while registering a quarterly growth of 0.4%, CyStat said. The financial sector was the only economic activity to register annual losses.

In absolute terms, the output of Wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities amounted to €1.39 billion in the first quarter of 2024, followed by Public administration and defence; compulsory social security; education; human health and social work activities which accounted for €1.14 billion. The outpup of Information and Communications activities in Q1 2024 amounted to €0.70 billion, followed by Professional, scientific and technical activities; administrative and support service activities with €0.63 billion, Cystat added.