2021.05.1809:38:00UTC+00Cyprus Economic Contraction Slows In Q1

Cyprus' economic contraction slowed in the first three months of the year, but the economy remained in recession, as activity picked up amid an easing in restrictions linked to the coronavirus pandemic, preliminary data from the statistical office showed Tuesday. Gross domestic product decreased a non-adjusted 1.6 percent year-on-year following a 4.5 percent slump in the fourth quarter of 2020. In the same period last year, the economy grew 1.0 percent. On a seasonally and working-day adjusted basis, GDP fell 1.6 percent year-on-year after a 4.4 percent decline in the previous quarter. Economic output has been falling in annual comparison since the second quarter of 2020 when the coronavirus started impacting activity across the world. Compared to the previous quarter, GDP grew a seasonally and working-day adjusted 2.0 percent in the first quarter following a 1.1 percent increase in the previous three months. The statistical office attributed the negative GDP growth to weak performance in the hospitality sector, manufacturing, transport, storage and communication, wholesale and retail trade, repair of motor vehicles, arts, entertainment and recreation, and other service activities.