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Growth accelerated in Q4

12/02/2016 13:30
The Cypriot economy recorded accelerated growth in the last quarter of 2015, the fourth consecutive quarter of positive performance, based on preliminary estimates of the Statistical Service.

According to figures announced today by the Statistical Service and Eurostat, the GDP adjusted for seasonal fluctuations and working days grew by 2.7% YoY in the fourth quarter of 2015 against a 2.3% annual growth in the third quarter of 2015.

On a quarterly basis, ie in relation to the third quarter of 2015, the economy grew by 0.4% against growth of 0.5% in the third quarter.

It is the fourth consecutive quarter that the Cypriot economy records growth following a long recession that lasted for 14 consecutive quarters, starting from the third quarter of 2011.

According to the Statistical Service, the increase of the GDP growth rates is mainly attributed to the sectors of hotels and restaurants, professional, scientific and technical activities, retail and wholesale trade, manufacturing,construction, transport as well as the financial service activities.

Cyrpus’ creditors expect that economic growth in 2015 will stand at 1.5%.

According to data released by Eurostat today, the eurozone economy grew by 1.5% in the fourth quarter of 2015 compared with the fourth quarter of 2014 while in the EU the economy grew by 1.8%.

In the third quarter of 2015 the euro area economy grew by 1.6% while in the EU there was growth of 1.9%.

Germany's GDP rose by 1.3% against an increase of 1.7% in the third quarter of 2015 and the GDP in France rose by 1.3% against an increase of 1.1% in the previous quarter.

Greece's GDP recorded a contraction of 1.9% as in the previous quarter.

On a quarterly basis, the eurozone GDP showed no significant change compared to the third quarter of 2015 as it stood at 0.3%. In the EU it stood at 0.3% from 0.4%.

In a written statement, the minister of finance Harris Georgiades notes that "it is confirmed today that the Cypriot economy is on the road to recovery”.

He added that the annual growth rate of 1,6% for 2015, is the highest in seven years.

“Forecasts of those permanently disagreeing are once again denied. Now the conditions for creating new jobs and new opportunities in our economy emerge” he said.

However, the minister also stressed that there is a key condition that is the commitment to the reforms policy and prudent management of public finances. “We have to stay away from irresponsible practices of the past that led our economy to the brink of total collapse" he indicated.