Bailed-out Cyprus notches 2.7 pct growth in Q2

Bailed-out Cyprus notched a growth of 2.7 percent in the second quarter of 2016 relative to the same quarter last year, the Statistics Service said on Friday.

A statement said that growth was supported by all sectors except financial such as insurance corporations and occupational pension funds.

Growth of the annual Cypriot economy, estimated at about 20 billion euros (22.4 billion U.S. dollars), was actually 2.9 percent but was brought down after adjusting for seasonal fluctuations and working days.

Finance Minister Haris Georgiades said in a statement that the Q2 growth confirms the prospects of the Cypriot economy after achieving 1.6 percent growth in 2016, recovering from four years of recession.

But he warned against undue spending increases advocated by the opposition, saying that irresponsible practices of the past must be avoided to safeguard continues growth through a stable and responsible effort.

Cyprus exited a three year economic adjustment program under a three-year 10 billion euros bailout following an economic crisis cause by overspending and the collapse of the banking system.

Growth for the whole of this year is projected to be 2.5 percent but indications are that there may be a revision upwards following a pick up of the construction section and a growth in tourism which reached about 20 percent. (1 euro = 1.12 U.S. dollars) Endit