Full-year GDP Estimates at 15.15 bln, 0.5% growth vs 1.1% in 2010

Full-year estimates for GDP have been set at 15.15 billion euros for the full-year 2011, reflecting a 0.5 percent growth versus 1.1 percent in 2010, said the Cyprus Statistical Service (CySTAT).

Most notably, the construction sector showed signs of stress, dropping 10.3 percent to 1.3 billion euros. Accomodation and food services showed a rise of 6.7 percent, compared to 3.4 percent in 2010.

The full report can be found here.

The economy slipped back into recession after two consecutive quarters of negative growth in the third and fourth quarters of 2011, according to CYSTAT's revised figures.

CYSTAT said that the economic growth contracted by -0.1 percent in the fourth quarter of 2011, compared to -0.8 percent in the third quarter.

Two consecutive quarters of negative growth mean a recession, and it is a double-dip because Cyprus emerged out of a recent recession at the beginning of 2011.

Economists say that recovery from a double-dip recession is more difficult, particularly amid a bearish wider economy in the eurozone. The economy also took hits from the damage caused by the explosion at Evangelos Florakis naval base, and a drop-off in investment in the private sector.

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