Cypriot economy bounces back in Q2 after 2013 near meltdown

Cyprus' economy bounced back strongly in the second quarter of this year, registering a growth of 0.9 percent year-on-year, according to seasonally-adjusted flash data released by the country's statistical service on Friday.

Growth before adjustment was 1.2 percent.

The adjusted growth following an expansion of the economy by 0.5 percent in the first quarter of this year was a first positive trend after 11 consecutive years of recession.

Cyprus was pulled back from bankruptcy by the Eurogroup and the International Monetary Fund in March 2013, with a 10-billion-euro (11 billion U.S. dollar) bailout.

The eastern Mediterranean island will complete its three-year adjustment program in less than eight months and the government says it may not need to borrow the last three billion euros of its financial assistance.

The Statistical Service said growth rates were recorded in manufacturing, trade, hotels and restaurants, transport, communication, administrative and support service activities and the financial service activities.

Finance Minister Harris Georgiades, who has been under fire from Cypriot opposition parties for his insistence of diligently applying the economic adjustment program agreed with international lenders, said the acceleration of the economy's growth rate is a very encouraging development.

He vowed that Cyprus would continue on a path of reform, consolidation, and change.

"The efforts of our fellow citizens, workers, and the business community bring results," Georgiades said in a written statement.

International lenders revised upwards their projections for the Cypriot economy this year to 0.5 percent from an estimate of -0.5.

Georgiades said officials at his ministry estimate the growth at the end of the year at over 1.0 percent. Endit