Filenews 3 September 2024 - by Theao Thiopolou
There may be a perception that tourism is the engine of the Cypriot economy, but the reality is that four other sectors have the privilege of producing a significant percentage of the gross value added of the economy and overall giving Cyprus the lead to show the highest growth in the Eurozone.
Hotels and restaurants, construction, information and communications, wholesale and retail trade, motor vehicle repair are the five sectors that supported the growth of the economy and did not let the pace fall below 3.5% in the third quarter of 2023. The growth rate of the economy in the second quarter of 2024 is positive and is estimated at 3.6% compared to the same quarter of 2023. After adjusting for seasonal fluctuations and working days, the growth rate is estimated at 3.7% and the Gross Domestic Product (GDP) is estimated at €6,617.9 million. The dynamics of the Cypriot economy due to specific sectors of the economy have resulted in Cyprus in the second quarter showing a growth rate of 3.7%, the highest at European level, when the Eurozone average was 0.6% and in the European Union as a whole 0.8%.
Data from the Statistical Service show that a contribution to GDP of €6.61 billion. In the second quarter of 2024, they had €1.38 billion. Hotels - restaurants and catering, construction, wholesale and retail trade, showing an increase of 4.2% year-on-year and a decrease of 0.2% quarter-on-quarter. In the second quarter of 2023, the value added of the five main sectors of the economy was €1.21 billion. showing an increase of 6.7% year-on-year and an increase of 1.2% quarter-on-quarter.
The sectors with the second highest value added of €1.11 billion In the economy in the second quarter of 2024, it was the sector of public administration and defense, compulsory social security, education, activities related to human health and social care. They showed an increase of 3.3% year-on-year and an increase of 0.4% quarter-on-quarter. In the second quarter of 2023, the value added of the five main sectors of the economy was €1.06 billion. showing an increase of 1.3% year-on-year and an increase of 0.4% quarter-on-quarter.
The information and communication sector contributed €688.5 million to GDP. in the second quarter of 2024, showing an increase of 7% year-on-year and an increase of 2.1% quarter-on-quarter. In the second quarter of 2023, the sector's contribution was €578 million showing growth of 5.1% year-on-year and 1.1% quarter-on-quarter. Professional, scientific and technical activities, administrative and support activities contributed to GDP of €621.7 million. showing growth of 3.5% year-on-year and 0.2% quarter-on-quarter. The construction sector contributed €382.4 million to GDP, financial and insurance activities €443.8 million and real estate management €515.1 million.
But there are also sectors of the economy that make a meagre contribution to GDP creation, such as the primary sector in Cyprus. Agriculture, forestry and fisheries have contributed only €94.8 million in GDP, the smallest amount recorded based on the data of the Statistical Service. The sectors mining and quarrying, manufacturing, electricity, steam and air conditioning, water supply, wastewater treatment, waste management and sanitation activities contributed to GDP €406.3 million, manufacturing €323.2 million.
