Productivity in Cyprus rose in 2017, according to preliminary data published by the Cyprus Productivity Centre (CPC). According to the CPC, productivity measured as GDP per employee rose by 0,5% in 2017 compared with 2016, while productivity measured as GDP per working hour increased by 0.6% compared with 2016.
The rise in labour productivity is mainly due to the GDP increase by 3.9%, employment increase by 3.4% and the numbers of employees by 3,4% and working hours by 3.3%, the CPC said.
For the period of 2015-2017 labour productivity in Cyprus rose by 0.4% measured as GDP per employee and by 0.5% measured as GDP per working hour. Cyprus, secondary sector marked the highest increase with 7.0%, due to a 12.9% rise in Gross Value Added per working hour and an increase of 5.5% in total working hours.
The primary sector, where Gross Value Added increased but working hours remained the same, registered an increase of 2.5% compared with 2016. In construction, productivity spiked by 14.9% due to GVA which rose by 25% and employment by 8.8%, the CPC added.
The sectors of hotels and restaurants, manufacturing industries and wholesale and retail trade also increased with GVA per working hour increase of 5.7%, 3.7% and 2.6% respectively, owing to increase in GVA and an increase in employment to a smaller extend. According to the CPC, productivity in the financial and insurance services sector marked a negative change, due to a reduced GVA in the sector, combined with an increase in employment. Productivity in transport and storage also declined compared with 2016.
In 2017 labour productivity for the whole of the Cypriot economy is calculated in constant prices at €48,847 per employee and at €27,38 per working hour, the CPC noted.