Cyprus mired in accelerated recession in Q4

Economic recession in bailed-out Cyprus accelerated in the fourth quarter of 2014 relative to the previous three quarters, according to flash data released by the Statistics Department on Friday.

The economy contracted by 0.7 percent in the fourth quarter on a quarter-on-quarter basis, compared to 0.3 per cent in the third quarter.

The contraction of the gross domestic product increased to 1.9 percent on a year-on-year basis in comparison to a drop of 1.8 percent in the third quarter.

Banking, manufacturing, transport and construction regressed in the fourth quarter but positive growth occurred in the trade and hospitality sectors.

Cyprus has been in recession since the fourth quarter of 2011 and had to apply for bailout by the Eurogroup and the International Monetary Fund in June, 2012 after being shut out of international markets for almost two years.

A messy 10-billion-euro bailout in March, 2013 sent the economy into deeper recession than ever before as the banking system of the eastern Mediterranean island's was downsized and restructured.

International lenders have projected a 0.5 percent positive growth this year but this prospect is tempered by the crisis hitting Russia in the aftermath of economic sanctions and falling oil prices.

Russia, which is one of the main tourism markets of Cyprus, is expected to send 25 percent less tourists this year following a peak of 800,000 tourists last year. Endit