Filenews 15 November 2023
Against the weak growth of the Eurozone, the Cypriot economy moved by 0.1%, presenting the highest rate in the European Union (EU) in the third quarter of 2023 at 2.2% (compared to the same quarter of the previous year), despite the fact that households and businesses have been affected by inflation prices and increased interest rates aimed at limiting consumption.
The data announced yesterday by Eurostat and the Statistical Service show the trends formed in Europe but also which are the sectors that support growth in Cyprus and kept it stable as in the second quarter of 2023 (2.2%), resulting in a European first in the best performance.
Hotels and restaurants, transport and storage, wholesale and retail trade, motor vehicle repair, information and communications, construction, arts, entertainment and entertainment and other service activities are the seven sectors that supported economic growth and did not let the pace fall below 2.2% in the third quarter of 2023.
According to the Statistical Service, in the first quarter of 2023 the growth rate was 3,2% (compared to the corresponding quarter of the previous year), while in the third quarter of 2022 the growth rate was 4,3% (compared to the corresponding quarter of the previous year).
A day before the Statistical Service announced the data on the growth rate, the Minister of Labour, Yiannis Panayiotou, speaking from the podium of the 61st Annual General Assembly of the Larnaca Chamber of Commerce and Industry, did not fail to stress that the economy is based on solid foundations and reaffirmed that "we are moving in the same direction as collective cooperation for the development of the economy of Cyprus".
He stressed that according to estimates, next year Cyprus will have the highest surplus in the last decade.
Eurozone economy contracted
Cyprus stands out in the EU in growth and it is worth noting that the eurozone economy contracted marginally on a quarterly basis in the third quarter, which raises the possibility of an artificial recession if the fourth quarter proves equally weak. It should be noted that an artificial recession is defined as a fall in GDP for two consecutive quarters on a quarterly (not annual) basis.
Eurostat data showed for the growth of each European country's economy in the third quarter of 2023: Belgium 1.5%, Bulgaria 1.7%, Denmark 0.8%, Spain 1.8%, France 0.7%, Latvia 0.6%, Poland 0.5%, Portugal 1.9%, Romania 2.1%, Slovenia 1.6%, Slovakia 1.1%.
There was no growth in Lithuania, Italy and a negative change in growth was recorded in the Czech Republic -0.6%, Germany -0.4%, Estonia -2.5%, Ireland -4.7%, Hungary -0.3%, Netherlands -0.5%, Austria -1.2%, Finland -1%, Sweden -1.2%.
Employment
At the same time, the number of persons employed increased by 0.3% in the euro area and by 0.2% in the EU in the third quarter of 2023, compared with the previous quarter. In the second quarter of 2023, employment had increased by 0.1% in both zones.
Compared with the same quarter last year, employment grew by 1.4% in the euro area and by 1.3% in the EU in the third quarter of 2023, following +1.3% in the euro area and +1.1% in the EU in the second quarter of 2023.
