Gross domestic product dipped by a seasonally adjusted 0.3% in the second quarter from the previous three months, one of the shallowest declines recorded since the economy began contracting in mid-2011, preliminary data released by the island’s statistics office on Thursday showed.

On an annual basis, the economy shrank 2.5% in April to June, compared to a revised 3.9% contraction in the first three months of this year. The island has not posted economic growth since the second quarter of 2011.

The tourism and trade sectors grew in the second quarter, after declining in the previous quarter, the statistics office said. The manufacturing, construction, banking and transport sectors all contracted. Tourism arrivals rose 6.0% in the first six months of 2014 compared to a year earlier, according to the statistics office.

Cyprus’ international lenders from the International Monetary Fund and the European Union expect the economy to contract by about 4.2% this year, after shrinking 5.4% in 2013.

Source: Cyprus Mail