Cyprus reports growth in Q1 after 14 consecutive quarters of recession

Cyprus on Wednesday reported a return to economic growth in the first quarter of 2015, after 14 consecutive quarters of deep recession.

Finance Minister Harris Georgiades said in a statement that the country's statistics department data showed a 0.4 percent growth in the first quarter this year.

"This is a significant development which affirms the positive prospects of the Cypriot economy," Georgiades said.

But he warned that the economic recovery was still at its initial stages and remained fragile in light of Cyprus' 10-billion-euro (about 11.2 billion U.S. dollars) bailout by the Eurogroup and the International Monetary Fund in March 2013.

The European Commission had said in its spring economic projections that it expected Cyprus to mark a 0.5 percent recession at the end of 2015, following a 2.5 percent economic slip in 2014, much lower than originally forecast by international lenders.

During a recent survey of its economy, the government said it agreed with its lenders that there would be a 0.5 percent recession by the end of the year, but insisted that Cyprus would disprove projections as it had done for other projections since being bailed out.

Economists typically consider an economy to be out of recession after three consecutive quarters of growth.

Georgiades said Cyprus still had a long way to go, adding that reforms applied by the government in line with its bailout deal would have to continue.

"Far from celebrations, but without falling into a negative attitude, with confidence, we'll make it," said Georgiades. Endit