Cyprus’ fourth-quarter GDP (2015) rose to 2.5 percent compared to minus 1.8 percent for the same quarter in 2014, said the Cyprus Statistical Service (CySTAT) in its latest estimate. This is revised upwards from the previous estimate of 2.4 percent.

The actual positive GDP growth for Q4 2015 on an annual basis is 0.7 percent.

The growth rate in the third quarter was 2.3 percent year-on-year, compared to minus 2.1 percent in the same quarter of 2014.

The island’s small economy is in a fragile recovery, supported by increased tourism, but it will take more time to get back to pre-crisis growth, investment confidence and employment levels.

Nonetheless, the backwards slide has been stopped and the long climb back up to a healthy economy has started.

Another encouraging sign is that Cyprus is now officially out of the bailout memorandum with the ECB and IMF.

“The completion of the programme is not the end of the road, but it is a new beginning, which will see dedication, commitment and effort, in the direction of further reforming the economy of Cyprus, staying clear of the mistakes of the past,” said Finance Minister Haris Georgiades.

In 2013, Cyprus had no choice but to agree to a financing deal from the ECB and IMF after several years of recession, rising state debt and no access to international lending markets. This followed the previous communist government’s fiscal mistakes of overspending in a slowing local and international economic climate.

Although the island has exited the bailout deal successfully and is back in positive growth territory, several challenges remain, including high unemployment and deflation.