Activity softened markedly in the first quarter as Covid-19 started to bite, with GDP expanding 0.9% on an annual basis in the first quarter (Q4 2019: +3.4% year-on-year)—the worst reading since Q1 2015. According to the preliminary release by the Statistical Service of Cyprus (CYSTAT), the slowdown chiefly reflected the impact of the preventive measures implemented to contain the spread of the pandemic, which suspended non-essential activities. The hospitality, manufacturing, leisure and construction industries were the hardest hit.
On a quarterly basis, the economy contracted 1.3% in Q1, following Q4 2019’s 1.0% expansion. Q1’s reading marked the worst downturn since Q2 2013.
More detailed national accounts data will be released on 29 May.
FocusEconomics panelists project GDP to increase 7.4% in 2020, which is down 4.1 percentage points from last month’s forecast, and rebound by 6.0% in 2021.
Source:https://www.focus-economics.com/countries/cyprus/news/gdp/gdp-growth-eases-to-five-year-low-in-q1