Cypriot economy expands by 3.3 pct in Q1

The economy of bailed-out Cyprus expanded by a healthy 3.3 percent in the first quarter on a year-on-year basis, a growth beyond expectations, the Finance Ministry said on Tuesday.

The European Statistical Service, Eurostat, and the Cypriot Statistical Service, Cystat, also said in separate statements that the Cypriot economy grew 0.6 percent in Q1 relative to the Oct.- Dec. period.

"The GDP growth rate during the first quarter of 2017 is estimated at 3.4 percent over the corresponding quarter of 2016. Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at 3.3 percent," Cystat said.

Based on the current growth trend, economist Stavros Agrotis told a local newspaper that he expects the economy to expand by 3.6 percent by the end of the year, well above the 2.9 percent projection by the Ministry of Finance in April.

Cyprus was hit by a recession which lasted 12 consecutive quarters and was forced to seek bailout in 2013 by the Eurogroup and the IMF.

It managed to return to minimal growth in the third quarter of 2015, and from then on, it achieved a yearly growth of between 2.5 and 3 percent.

The statistical services of the European Union and Cyprus said the last quarter's growth was mostly due to the hotels and restaurants sectors, which were supported by increased tourist arrivals, retail and wholesale trade, construction and manufacturing. Endit