Output on the bailed-out island nation contracted by 0.4% in the third quarter from the second, revised to a fall of 0.4% from an earlier reported 0.3%.

On a yearly basis, GDP fell 2.0% compared with 2.2% in the second quarter.

Cyprus has been recording negative rates of growth since the third quarter of 2011, and was the recipient of a €10 billion-aid package from the EU and the IMF in early 2013.

Authorities expect the recession to be narrower than 3.0% for the whole of 2013, and a return to growth of about 0.5% next year.

While tourism and trade were performing well in the third quarter, the rate of growth in annual tourism revenue tapered off in August – the last available data – to 2.8% compared to more than 6% in July.

Source: Cyprus Mail