Economy expands 4% in Q1, Cystat says

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By Stelios Orphanides

Cyprus’s economy expanded 4 per cent in the first quarter of 2018 compared to the respective three-month period last year and 1 per cent compared to the quarter before, the statistical service said.

In January to March, economic output rose a seasonally adjusted 4 per cent compared to the respective period of 2017, Cystat said in a statement on its website on Friday.

On May 15, Cystat announced its preliminary estimate of an annual growth rate of 3.8 per cent and a quarterly 0.8 per cent.

The increase in output was in the areas of hotels and restaurants, retail and wholesale trade, construction, manufacturing, professional, scientific and technical activities and administrative and support service activities, Cystat said.

 

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]l.com

  • Voice of Cyprus

    Impressive!!!

  • Enas Einai

    Damned Greek Cypriots they are nothing but racists and want it all. This positive expansion belongs to the occupied area too and Turkey should immediately send more troops and blockade the whole island until the Greeks Cypriots share their labors with the occupied area. After all in 1963 I am sure some Greek Cypriot took advantage of an innocent Turk in a business transaction.

    • CM follower

      you might as well say it before they say it, i totally agree.

    • atmost55

      lol

  • Cyprus MH

    Every time anyone mentions anything about the expansion of the economy, or growth, or budget surplus, the merchants put up their prices while the salaries stay the same. What a dilemma!!

  • Kevin Ingham

    Oddly enough, if people don’t pay the interest and capital repayments on their loans, no one pulls the plug on insolvent borrowers and businesses and no one pulls the plug on insolvent banks you would have to be a special kind of stupid NOT to have economic “growth”- that does not meant to say everything (or more relevantly anything) is working correctly because that is is far from the case as you could actually envisage

    • Cydee

      Good point.

      • Kevin Ingham

        I forget to mention that the government hasn’t really started repaying it’s debts either, it’s simply rolling it over and in the case of the Co op has issued bonds that it does not have the collateral to back up

        Without the money from passports sales the country would be still be in recession – as it is it is simply in remission, and no where near recovery

        • Peter G

          Hogwash. What does any of this have to do with increased economic activity?

          • Kevin Ingham

            Government spending is pretty much acknowledged as driving factor of economic growth, government repayment of debt is pretty much universally regarded as an inhibitor of growth. Government subsiding of dead ducks does no one any good whatsoever

            John Maynard Keynes outlined the whole process very comprehensively a little while back

          • Peter G

            Thank you for the little excursion into Keynesism. What does that have to do with the expansion of economic activity in Cyprus during Q1? Nothing, merely a diversion and a desire to cast aspersions.

          • Kevin Ingham

            The expansion is down to construction on the back of passport selling and booming tourism that is primarily fortuitous and not sustainable at it’s current growth rate (certainly not with insolvent banks and debt ridden hoteliers)

            Remedying Cyprus’ current economic problems involves pulling liquidity out of the system and repaying debt. When consumers start repaying debt they buy less goods and services and when government start repaying debt they cut back on construction and infra structure projects.

            Somewhere along the line the books have to balance and there is about Euro 20 billion of unearned liquidity in the Cypriot economy that has to be accounted for- be it through falling property prices, wound up businesses and/or increased taxation

  • atmost55

    Bravo Kypros mou, my beautiful island!