Cyprus’ economy grows 12.8% in second quarter

Cyprus’ economy is on a path of recovery and growth, with private initiative, employees and local companies as its pillars, Finance Minister Constantinos Petrides said after Q2 GDP jumped 12.8%.

He said that with the proper financial management, the implementation of the National Plan for Recovery and Resilience, which includes significant reforms and investments, will restore economic activity and employment conditions in the country to pre-pandemic rates.

According to a flash estimate by the Statistical Service, the economy grew by 12.8% in the second quarter of 2021.

“This is significantly better than expected, and in 2021 it will accelerate with a strong growth rate that will exceed the initial estimate of the Ministry of Finance of 3.7% GDP growth,” Petrides said, adding that this means very positive prospects for the following quarters and shows the efficacy of the measures taken by the government during the pandemic.

“The growth rate of the economy will make Cyprus one of the few in the EU that will cover the losses in national income during 2020.”

He argued that Cyprus managed in 2020 – the most difficult year of the pandemic – to restrict its GDP decline to only 5.1%.

“A significantly better performance than the average recession in the EU… despite initial estimates by the European Commission of a recession of 7.7%.” [Financial Mirror]