According to the data released, GDP dropped in Cyprus by 0.7% during the first quarter of 2014 compared to the corresponding period in 2013, while during the last quarter it had dropped by 0.8%.

Seasonally adjusted GDP rose by 0.2% in the euro area and by 0.3% in the EU28 during the first quarter of 2014, compared with the previous quarter, according to flash estimates published by Eurostat, the statistical office of the European Union.

In the fourth quarter of 2013, GDP grew by 0.2% in the euro area and by 0.4% in the EU28.

Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 0.9% in the euro area and by 1.4% in the EU28 in the first quarter of 2014, after +0.5% and +1.0% respectively in the previous quarter.

Meanwhile Deputy Secretary to the President Constantinos Petrides said Cyprus' economy is on its way to recovery, noting however that the recovery will be gradual and the main benefits of the reforms will only be felt over the next few years. 



In his speech at the 4th Nicosia Economic Congress entitled ‘The State of Cyprus Economy - 
One year after the Euro Group Decision’, Petrides stressed, “we have been able to withstand the shock, both politically, and economically. We are on the way to recovery”. 



“We have come a long way in addressing the imbalances of the banking system which has already been recapitalized, and is also at an advanced stage of restructuring. Capital controls are gradually being relaxed”, he added. 



As he said, “our main challenge now is to raise additional capital from private sources and to secure foreign participation in our banking sector. That would decisively re-establish confidence. The prospect, unthinkable a few months ago, looks very promising today”. 



In terms of public finances, Petrides said, “our efforts have been equally determined. We have drastically cut public expenditure and our fiscal performance is already much better than expected. We have created fiscal buffers, beyond the targets set by Troika”.