Cyprus Economy Profile | glObserver Global Economics


(Cyprus Banks) Economic Overview The recession to prevail through 2014 The economy remained in recession in 2013, for the second consecutive time(-5.4% next -2.4% in 2012) on the back of deep falls in domestic request. Capital controls, troubled financial sector and weak domestic market have sharply reduced private investment – see chart 1.

Sourced through Scoop.it from: globserver.cn

The economy remained in recession in 2013, for the second consecutive time(-5.4% next -2.4% in 2012) on the back of deep falls in domestic request. Capital controls, troubled financial sector and weak domestic market have sharply reduced private investment – see chart 1. However, the pace of contraction is easing (-1.0% q/q in Q4 2013, the smallest since Q2 2012) and the recession was less severe than initially expected by the IMF/EU (-8.7%) notably thanks to the resilience of private consumption (as households preferred to spend their money than to save it through the banks) and to a pick-up in tourism receipts.

See on Scoop.itglObserver Europe

Author: globserver

Director of Eyecom china

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