Cyprus economic contraction worst since mid-1970s

Cypriot protester holding banner Austerity measures in Cyprus have provoked citizen protests

Related Stories

The struggling economy of Cyprus has suffered its worst annual contraction since the mid-1970s, according to official figures.

Its economy shrank 5.9% in the second quarter compared to the same period last year, more than expected.

And it fell 1.8% between April and June compared with the first quarter - the eighth successive quarterly fall.

In March, the European Union and the International Monetary Fund agreed a 10bn-euro (£8.5bn) bailout for Cyprus.

The news came on the same day Cypriot MPs adopted legislation demanded by international creditors in return for the second instalment of the bailout money.

Cyprus received the first tranche, worth 3bn euros, in May.

The legislation, rejected in an earlier vote, will see the country's co-operative banks come under the direct supervision of the central bank.

According to the European Commission, the European Central Bank, and IMF, the Cypriot economy is expected to contract 8.7% in 2013, 3.9% in 2014, before recovering 1.1% in 2015.

More on This Story

Related Stories

More Business stories

RSS

Features & Analysis

  • Leonardo da Vinci Self-PortraitMagical masterpiece

    The Leonardo hidden from Hitler in case it gave him special powers


  • Woman smelling pot of herbsWake up

    Is eating sage better for your alertness than coffee?


  • George Foreman and Muhammad AliThe Rumble

    Was this the most compelling sporting event last century? BBC Sport


  • GunGun dilemma

    What if you had a killer product on your hands - literally?


From BBC Capital

Programmes

  • Francis Rossi, co-founder of band Status QuoHARDtalk Watch

    Status Quo's Francis Rossi explains how alcohol led him to take cocaine

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.