Cyprus’ GDP growth rate recorded a severe – but expected – slowdown in the first quarter of 2023 compared to 2022, its first quarter in particular.
Specifically, the island’s growth rate in the first quarter of 2023 is estimated at 3.4% compared to 4.4% in the last quarter of 2022 and 6.3% in the first quarter of 2022.
The flash estimate was released on Wednesday by the Statistical Service of Cyprus (CyStat) and the expected slowdown is mainly attributed to the economic state of paly worldwide. As developed after Russia’s war in Ukraine.
The reduced – but nonetheless positive – recorded positive GDP growth rate is mainly attributed to the sectors Hotels & Restaurants, Transport & Storage, Information & Communication, Wholesale & Retail Trade, Repair of Motor Vehicles, Arts, Entertainment & Recreation, Other Service Activities and Financial Activities.
According to the European Commission’s spring forecasts published on Monday, the growth rate of the Cypriot economy in 2023 will fall to 2.3% from 5.6% in 2022.
The Commission estimates that in 2024 the GDP growth rate in Cyprus will reach 2.7%. Most other EU countries are expected to have a lower growth rate, both for 2023 and 2024.
The marginal GDP growth in the Eurozone, which preliminary data had recorded, was confirmed by a new Eurostat reading for the first quarter of 2023.
This was released on Tuesday and also showed that in the first quarter of 2023 Eurozone seasonally adjusted GDP grew marginally by 0.1% compared to the previous quarter. And by 1.3% compared to the first quarter of last year.