Cyprus economy shrinks 0.3pc in Q3

NICOSIA, Dec 9 (AFP): The Cypriot economy contracted 0.3 per cent in the third quarter, a slight improvement on a 0.4 per cent dip in the previous three months, the state statistical service said Tuesday.

This was the 13th successive negative quarter for the Mediterranean island country's battered economy, according to a revised estimate, which had put the July-September contraction at 0.4 per cent.

The latest data shows that real GDP, based on seasonally and working-day adjusted data, shrank 1.8 per cent in the third quarter from a year earlier, compared with a November 14 estimate of 2.0 percent.

In the second quarter, GDP fell 2.2 per cent year on year.

International lenders have sharply lowered their forecast for full-year performance to a negative 2.8 percent from minus 4.8 per cent.

The economy contracted by 5.4 percent in 2013.

But due to bad debt and high unemployment, hovering at around 17 per cent, they have cut their projections for recovery next year from 0.9 per cent growth to 0.5 percent.

The statistical service said there was positive growth in hotels, restaurants, legal and accounting services and trade.

But there was negative growth in construction, manufacturing, transport, banking and other services.