Jun 17, 2015

Economy Expands in Q1 of 2015

After three and a half years of recession or 14 quarters of negative growth, the Cyprus economy expanded in the first quarter of 2015, with GDP growing by 1.6% over the previous quarter, the fastest in the eurozone according to Eurostat, defeating albeit mildly European Commission predictions for continued contraction  this year. In its May 5 Spring forecast, the European Commission had said that the island’s economy would contract by 0.5% this year before returning to a growth of 1.4% in 2016.

Finance Minister Harris Georgiades stated that “Reform and consolidation efforts are paying off” but noted that the recovery as “still at its early stages and thus remains fragile. For that reason it is imperative that the joint efforts aimed at reform and development continue.”