The loss of the gross domestic product of the Cypriot economy in 2020 amounts to € 1.10 billion, a year marked by the coronavirus pandemic and the restrictive measures to limit its spread, which led to the paralysis of a significant part of the economy and mainly the tourism sector.
According to the latest data from the Statistical Service, the Cypriot GDP shrank in 2021 by 5.1% in terms of seasonally adjusted data compared to 2019, with only the first quarter showing a positive annual growth rate, after the pandemic occurred in Cyprus in March 2020.
According to Cystat, the GDP of Cyprus in 2020 on the basis of seasonally adjusted data amounted to € 20,527 million, compared to € 21,632 million in 2019. In the first quarter of the year, the Cypriot GDP amounted to € 5.44 billion, the second fell to € 4.72 billion, to recover to € 5.14 billion in the third quarter and to € 5.22 billion in the last quarter of the year.
The Cypriot GDP in the first quarter showed a growth rate of 1.4% on an annual basis (seasonally adjusted data) while the second quarter “dipped” by 12.6%, reflecting the almost two-month lockdown and closure of airports, which dealt a huge blow in the tourism industry.
In the third quarter, the annual contraction rate was reduced to 4.7% compared to the corresponding quarter of 2019, reflecting the gradual lifting of restrictive measures and the return of economic activity, while in the last quarter of the year, the economy shrank by 4, 5%. The last quarter of the year was marked by local lockdowns in Paphos and Limassol, while in the last month of 2020 a total lockdown was imposed, which resulted in a slowdown in GDP.
The course per quarter
A more indicative picture of the effects of the pandemic and the impact of the restrictive measures is presented in the course of GDP on a quarterly basis, ie compared to the immediately preceding quarter.
The first quarter of 2020 started with a decrease of 0.5% compared to the fourth quarter of 2019, with the contraction in the second quarter jumping to 13.1% compared to the first quarter of 2020, reflecting the almost two-month lockdown in March and in April.
In the third quarter, the Cypriot GDP recovered part of the lost activity, showing a growth rate of 8.9% compared to the second quarter, which is attributed to the gradual lifting of restrictive measures and consequently economic activity, with tourism still underperforming.
However, the momentum did not continue in the fourth quarter of the year, with the growth rate limited to 1.4% compared to the third quarter, with economic activity slowing down due to local lockdowns in Limassol and Paphos in November, but also total pancyprian lockdown in the last month of the year.
According to the Statistical Service, the negative GDP growth rate is mainly due to the sectors: “Hotels and Restaurants”, “Processing”, “Transport, Storage and Communications”, “Wholesale and Retail Trade, Motor Vehicle Repair”, “Arts, Entertainment” and Entertainment “,” Other Service Activities “.
Philenews / ΚΥΠΕ