08/10/2003 20:23
According to CYSTAT data released on Wednesday, the growth of the Cyprus economy for the second quarter of 2003 remained unchanged. The drop in tourist income, the negative performance of the manufacturing sector and the slump in the retail sales have resulted in a 0% GDP growth in the second quarter against the first quarter of 2003. Growth rate has dropped to 0.7% compared to the corresponding period of 2002, which is the lowest in the past few years.
The rapid development of the property market did not manage to offset the impacts of the international economic slowdown and the Cyprus GDP has, therefore, stuck to the same level as in first quarter.
The Statistics Service has proceeded to a downward revision of its estimates for the first quarter. According to the new estimates, GDP for the first quarter of 2003 shrunk by 0.6% compared to the fourth quarter of 2002, since the economic activity was affected by uncertainty in the region.
The tourist income of -17.1% and the retail service of -3.2% have contributed heavily the negative picture of the first two quarters. However, the Finance Ministry anticipates that the growth rate will reach 2% by the end of the year.
On Thursday, CYSTAT is expected to release the retail sales for July.
The rapid development of the property market did not manage to offset the impacts of the international economic slowdown and the Cyprus GDP has, therefore, stuck to the same level as in first quarter.
The Statistics Service has proceeded to a downward revision of its estimates for the first quarter. According to the new estimates, GDP for the first quarter of 2003 shrunk by 0.6% compared to the fourth quarter of 2002, since the economic activity was affected by uncertainty in the region.
The tourist income of -17.1% and the retail service of -3.2% have contributed heavily the negative picture of the first two quarters. However, the Finance Ministry anticipates that the growth rate will reach 2% by the end of the year.
On Thursday, CYSTAT is expected to release the retail sales for July.
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