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The economic growth rate remains robust, standing at 2.5% in the third quarter of 2023 compared to the same quarter in 2022, despite prevailing external pressures, as reported by the Statistical Service.

After adjusting the Gross Domestic Product (GDP) for seasonal variations and working days, the growth rate is calculated at 2.2%, according to the latest announcement from the Statistical Service.

The GDP for the third quarter of 2023 reached €6,447.9 million, indicating a 2.2% increase compared to the corresponding quarter in 2022 and a 1.1% increase compared to the second quarter of 2022.

Notably, most sectors of the economy experienced growth in the third quarter of 2023, with only two exceptions.

The primary contributor to the economic upturn was a category encompassing wholesale and retail trade, repair of motor vehicles and motorcycles, transportation and storage, as well as accommodation and food services.

In this expansive sector of the economy, which includes commerce, hotels, and restaurants, there was a notable 5% growth on an annual basis, contributing €1,366 million to the economy.

The second major category with the most significant contribution to the country’s GDP is public administration, defense, compulsory social security, education, human health activities, and social care. The contribution to GDP was €1,088.4 million, reflecting a 1.4% annual increase.

The third-largest contributing sector to the GDP, amounting to €655.6 million and experiencing a 4.6% increase on an annual basis in the third quarter of 2023, is information and communication.

Following closely is the real estate activities sector, contributing €510.1 million to the GDP, with a modest 0.8% annual increase.

Among the sectors that demonstrated positive growth, mining and quarrying, manufacturing, electricity supply, natural gas, steam, air conditioning supply, water supply, wastewater treatment, waste management, and sanitation activities showed a 3.5% annual increase, contributing €389.3 million to the GDP.

The manufacturing sector recorded a 2.2% increase, contributing €351.1 million to the GDP in the third quarter of 2023.

The contribution of the financial and insurance activities sector decreased by 2.8% annually, with a participation of €442 million in the GDP.

Professional, scientific, and technical activities, administrative, and support service activities experienced a slight decrease of 0.1% on an annual basis, contributing €614 million to the GDP.

According to the Ministry of Finance, after the contraction period during 2012-2014, the Cypriot economy rebounded and grew by an average of 5.4% during the period 2015-2019.

A recovery was also observed in the EU economy, with an average growth rate of 2.1% for the period 2014-2019.

The economy is projected to accelerate in 2024 with a growth rate of 2.9%, surpassing the 2.4% from the previous year. The growth rate for 2023 is significantly higher than the Eurozone average.