12° Nicosia,
20 May, 2024

Cyprus GDP growth is creating more jobs

Government says pace of economic growth will create full employment conditions by 2021


Bailed out eurozone member Cyprus notched up its 13th consecutive quarter in positive growth with GDP rising 0.8 percent in the first quarter, an official estimate showed on Tuesday.

Seasonally adjusted data showed that Q1 growth was slightly down from the 1.1 percent growth in the previous quarter while year-on-year the economy grew 3.8 percent in Q1 lower than 4 percent of Q4.

"At this pace, it will be a matter of time, in two or three years,  that we will have full employment conditions in Cyprus," said government spokesman Prodromos Prodromou after the data was released. 

"The growth rate of GDP for the first quarter confirms the dynamics of the economy and shows that it is possible we will have 4% growth this year," he added.

Prodromou said economic growth is being accompanied by employment growth which he said will improve 3.5% this year while unemployment was down 9.1% in March 2018 after peaking above 16% in 2013.

Compared with the same quarter of 2017, seasonally adjusted GDP rose by 2.5% in the euro area and by 2.4% in the EU28.

The island's economy almost collapsed in 2013 but it has remained in positive territory since Q4 2014 and is one of the fastest growing economies in Europe.

The state statistical service on Tuesday reported positive growth rates in manufacturing, trade, hotels and restaurants, support services and construction.

The troika of international lenders -- the European Commission, European Central Bank and International Monetary Fund -- bailed out Cyprus for 10 billion euros in March 2013 to prevent a banking collapse.

Cyprus in return agreed to a harsh austerity programme but the country exited from the bailout - relatively quickly - in 2016.

The Cyprus economy grew by 4 percent last year and is estimated to grow by more than three percent from 2018 to 2020.

Economy  |  GDP  |  Cyprus

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