The Cyprus Statistical Service has released its report “National Economic Accounts 2007 (Provisional Estimates)”. A summary of the report follows; the full version is available from the Statistical Service’s website.
Main Economic Developments in 2007
The Cyprus economy continued its expansion through the year 2007 at a higher pace, in comparison with the previous year. The Gross Domestic Product growth rate is provisionally anticipated to be of the order of 4.4% for 2007 compared to 4.0% in 2006.
The main stimulus to growth in 2007 was provided by the tertiary sector (mainly Financial Intermediation, Real Estate, Renting and Business Activities and Wholesale and Retail Trade) expanding by 4.7% in real terms in 2007, compared to 4.6% in 2006. The secondary sector is exhibiting a real growth of 3.8% (mainly Construction) compared to 3.0% in 2006. On the contrary, the primary sector is recording a negative growth rate of -2.2% in 2007 compared to -3.6% in 2006.
Sectoral developments in 2007
The sector of Agriculture, Hunting and Forestry is exhibiting for fifth consecutive year negative growth rate of -2.3% in its value added, compared to -4.5% in 2006.
The Manufacturing sector is recording a higher growth rate of 2.1% in comparison to the 0.7 growth rate of 2006. Moreover, the Electricity, Gas and Water supply sector continues its expansion in 2007, registering a 3.1% growth rate compared to 2.4% in 2006.
Construction continues its expansion with high growth rates since 2001, recording a growth rate of 5.7% in 2007, compared to the 6.0% in 2006.
Hotels and Restaurants sector is exhibiting, for a third consecutive year, positive expansion after three years of negative growth rates, reflecting the gradual improvement of Tourism activity the last three years. Particularly, Hotels and Restaurants shows 2.8% growth in comparison to 2.7% in 2006.
The Wholesale and Retail trade sector registers a high growth rate of 5.5% in 2007 as against 5.2% in 2006. Transport, Storage and Communication, which recorded exceptionally high growth rates in 2004 and 2005 of 13.3% and 8.5% respectively, records a slowdown in 2006 and 2007 with real growth rates of 1.7% and 2.5% respectively. Furthermore, Financial Intermediation continues its expansion with high growth rates, recording a growth of 11.0% growth rate compared to 8.1% in 2006.
The Real Estate, Renting and Business activities continues its expansion with high growth rates, recording a marginally reduced 6.8% growth rate compared to 6.9% in 2006, while the growth rate of other Community, Social and Personal Services has increased to 4.8% in 2007 from 3.0% in 2006.
Furthermore, Public administration and Defence, Education and Health and Social work are exhibiting real growth rates of 1.0%, 2.2% and 2.2% in 2007, which are lower than those in 2006 of 3.0%, 3.0% and 3.9% respectively.
Expenditure on G.D.P.
Private final Consumption Expenditure is expected to register a 6.2% real growth rate compared to 4.2% in 2006. Moreover, Gross Fixed Capital Formation records an increase by 6.3% in 2007 compared to the 7.3% recorded in 2006.
Government final Consumption Expenditure is exhibiting a negative growth rate of -1.7% in 2007, compared to a high increase of 7.4% in 2006.
Exports of Goods and Services register an increase of 4.3% in 2007, lower than the real growth of 4.5% in 2006. Imports of Goods and Services record a growth of 6.9% in 2007, compared to a real growth of 6.6% in 2006.
Productivity, as measured by G.D.P. per gainfully employed population is provisionally expected to remain 1.3% as it was in 2006.
Inflation, as measured by the Consumer Price Index, is expected to end at 2.3% in 2007 compared to 2.5% in 2006.
Gainfully employed population is expected to rise by 3.0%, to about 369.8 thousands.