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Mari explosion slowed growth in construction sector

The explosion of confiscated munitions stored at the Mari naval base on July 11th that killed 13 people and devastated the Vasiliko power station has pushed the Cyprus economy into recession and slowed growth in the construction sector.

CYPRUS’ Gross Domestic Product (GDP) growth rate during the third quarter of 2011 is estimated at -0.6% over the corresponding quarter of 2010, according to the Flash Estimate compiled by the Statistical Service.

The Statistical Service reported negative growth rates in construction, manufacturing, and electricity, and the trade and transport sectors.

Positive growth was reported in the tourism, banking and public services sectors.

Due to the fact that growth rates during the first two quarters were revised down, the overall growth rate for the year will be depressed.

The first quarter showed a decline of 0.3% over the previous quarter in Q1, while the previous estimate put the growth rate at zero.

Quarterly growth in the second quarter is now estimated at 0.2%, compared with 0.3% in the previous quarter.

Further reading

Latest Figures: GDP Growth Rate, 3rd Quarter 2011 (flash estimate)

Readers' comments

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  • out of the frying pan into the fire says:

    What can you say blame someone else or some incident. Let’s not look at ourselves.

    I do wonder how long it will be before they blame the Cyprus Property News and arrest Nigel on jumped charges. And then a new tax on expats because they are the cause of the problem. Sounds a bit harsh, well, we will see.

  • Jim says:

    I don’t think the Mari explosion slowed growth in the construction sector. There was no growth to slow down. The government is clutching at straws with its excuses. The construction sector has been in decline for a much longer period. Foreign & domestic property buyers are not as gullible as they once were & most are only purchasing resale property that has title deeds.

  • Denton Mackrell says:

    @Ian. For weeks after the bang, there were massive power cuts across Cyprus affecting all businesses and work activity. Many were working half time. Customers drained away from restaurants and tavernas. Foreign tourists cancelled their trip. All this added to an already shakey economy.

  • Ian says:

    Just scratching my head with my schoolboy economics….. Understand that the Mari explosion has caused difficult times but (simplistically to me) Cyprus needs a new power station. This needs to be constructed. They’ll need construction workers to build a new station.

    How does that sit with pushing the Cyprus economy into recession?

    Or is it a heaven-sent opportunity to attribute blame for the economy to an unfortunate event?

    ‘Diversionary tactics’ spring to mind. Another opportunity to ignore the real reasons.

  • The views expressed in readers' comments are not necessarily shared by the Cyprus Property News.


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