UCy revises GDP growth to 1.3% up from 1.1%

The recovery of economic activity in Cyprus is forecast, according to the Economic Research Centre of the University of Cyprus, with real GDP growth for 2015 revised upwards from 1.1% in August to 1.3%.

This is far more optimistic than projections by the European Commission and the IMF that weaker growth (0.5%) for 2015.

Real output is estimated to expand (y-o-y) by 1.9% and 2.6% in the third and fourth quarters, respectively, the October UCy monthly report said.

The projected growth rates for the second half of 2015 should, of course, be interpreted in the light of the low levels of GDP reached during the corresponding period in 2014, the UCy report said, adding that real GDP growth in 2016 is forecasted at 1.5%, revised significantly up from 1.1% in the August survey.

“The upward revisions to the forecasts resulted from the strengthening of y-o-y real GDP growth in the second quarter in Cyprus and in the EU as well as from further improvements registered in a number of domestic leading indicators during the third quarter,” the monthly report said.

Source: Financial Mirror