TUESDAY, 17 SEP 2019



Facebook Linked In Twitter
Invest Cyprus 30/04-30/03/2019

Prodromos Prodromou: Turkey is Intervening to Prevent Understanding between the Leaders

Government Prepares Bill to Address Problems Faced by Entrepreneurs



brought to you by CIPA

UK Recession Fears Recede after Surprise Economic Growth

UK Recession Fears Recede after Surprise Economic Growth

Country avoids technical recession – but GDP is stagnant across three-month period, The Guardian reports.

The risks of the UK sliding into its first recession in a decade have receded after a stronger-than-expected and across-the-board 0.3% increase in activity in July.

Data from the Office for National Statistics showed that after a dismal spring and early summer all sectors of the economy registered growth in the third quarter’s first month.

Fears that Britain could slip into recession – two consecutive quarters of falling gross domestic product – had been stoked by the 0.2% decline in output in the three months to June.

However, in July the services sector – which accounts for about 80% of the economy – grew by 0.3%, while the struggling manufacturing and construction sectors also bounced back, with increases in output of 0.3% and 0.5% respectively. The City had been braced for a smaller 0.1% increase in GDP in July

The ONS warned against reading too much into a single month’s data, noting that in the three months to July the economy showed no growth.

David Cheetham, the chief market analyst at XTB online trading, said: “Following a flat reading in June this is a positive surprise and the accompanying rise in manufacturing production is also pleasing.

“While the figures are far from stellar, after a contraction in the second quarter the chances that we see a negative GDP print in the third have now dropped significantly, meaning that a technical recession will likely be avoided.”

The course of the economy has been dominated by Brexit during 2019 so far.

Firms built up stocks of goods in the first quarter in the run-up to the initial 29 March deadline for the UK leaving the EU – but the boost to growth was temporary because the delay to Brexit meant firms then ran down their inventories.

The decision by the motor industry to bring forward its annual maintenance shutdown from August to April also contributed to the drop in activity in the second quarter but should provide a boost in the third quarter.

Sir Charlie Bean, a former deputy governor of the Bank of England, said he thought it “highly unlikely” that the UK economy continued to contract in the third quarter, meaning a pre-Brexit recession would be avoided.

Speaking to MPs on the commons Treasury committee, he said the fall in GDP in the second quarter was “affected by unusual circumstances around the original Brexit date”, such as the closure of car plants. He said that after the planned shutdowns, factories would likely have continued producing over the summer months: “That will lead to a bounce in the production figures for manufacturing in August when they come out. I’ll be surprised if the third quarter isn’t something like 0.3% or 0.4% [growth in GDP].”


There were also hints from the latest trade figures that the current Brexit deadline of 31 October is having an impact on activity.

Paul Dales, the chief UK economist at Capital Economics, said the 0.3% rise in service-sector output in July followed four months of no change and was partly because of a 1.1% monthly increase in transport and storage output and a 1.6% jump in admin and support services output.

“That and the strong 2.5% and 2.7% monthly rises in the value of exports and imports respectively in July could be the first real signs that businesses are bringing activity forward ahead of the possible 31 October Brexit deadline,” Dales said.

The ONS said the UK’s trade was broadly in balance in July, with a goods deficit of £9.1bn offset by an £8.9bn services surplus. July’s £0.2bn shortfall was little changed on June’s £0.1bn deficit.

The National Institute for Economic and Social Research said it was pencilling in growth of 0.3% in the three months to September. Garry Young, its director of macroeconomic modelling and forecasting, said: “It looks like there has been a welcome resumption of economic growth in the third quarter, roughly offsetting the fall in the second quarter.”




France to Block Facebook's Libra Cryptocurrency In Europe

Finance minister says governments’ monetary sovereignty could be at risk, The ...

Philip Green's Topshop and Topman Report £505m loss

Pre-tax figure far exceeds £3.8m of losses recorded in previous year, The Guardian ...

Purdue Pharma 'Reaches Tentative Agreement' To Settle Opioid Cases

Drug-making giant Purdue Pharma has reportedly reached a tentative multi-billion-dollar ...



Oil Prices Soar After Attacks On Saudi Facilities

Oil prices surged by nearly 20% after two attacks on Saudi Arabian facilities on Saturday knocked out more than 5% of the world's supply, the BBC reports. ...

Cyprus Plans to Abolish Initial Ship Registration Fees

Cyprus continues to address every facet of its maritime offering to lure more shipowners to the island. The country’s deputy minister for shipping Natasa ...

Cyprus Commerce Ministry Promotes Potato Exports to Germany, Austria and Belgium

Commerce Minister Yiogros Lakkotrypis said on Friday, September 13 that the Ministry was taking action to promote potato exports to important markets, such as ...

Emirates is Looking For Cabin Crew In Cyprus

Emirates, the world’s largest international airline, is looking for Cypriot candidates to join its multinational cabin crew team. The Dubai-based airline ...

Cyprus’ Sovereign Ratings Affirmed with A Positive Outlook

Capital Intelligence Ratings (CI Ratings or CI), the international credit rating agency, today announced that it has affirmed the Republic of Cyprus’ ...

Location Benefit: How Nicosia Mall is winning with convenience

Cyprus’ newest shopping center is counting nine successful months of operation, and it has quickly become the destination of choice for Nicosians, ...

Government and Cyprus Seeds Join Forces to Strengthen Innovation

The Agreement between the Government and Cyprus Seeds for the funding of academic research teams in Cyprus comes into force following the signing of an ...

Prodromos Prodromou: Turkey is Intervening to Prevent Understanding between the Leaders

Government Spokesman Prodromos Prodromou said on Sunday, September 15 that Turkey is intervening to prevent Nicos Anastasiades, and Mustafa Akinci, from ...