NICOSIA, Aug. 15 (Xinhua) -- Bailed-out Cyprus maintained a strong economic growth in the second quarter this year, achieving a GDP increase rate of 3.5 percent in real terms, relative to the second quarter, 2016, flash estimates released by the Statistical Service on Tuesday said.
It said the economy grew by 0.9 percent relative to the first quarter of 2017.
The Statistical Service said growth was mainly attributed to all sectors of the economy except the financial and insurance sectors which recorded a negative growth.
Banks are still struggling to cope with a high rate of non-performing loans, despite bringing them down by about one-half since the 2013 crisis.
Thanks to a strong tourism sector, which grew by about 17 percent in the first six months, hotels and restaurants made a strong show, followed by retail and wholesale trade and construction.
Finance Minister Haris Georgiades said the growth was the result of prudent measures applied after Cyprus was pulled back from bankruptcy in a 10 billion-euro economic assistance program by the Eurogroup and the International Monetary Fund in 2013.
He said the same economic policies will be continued but emphasis will be given to the more needy sections of the populations and to tackling unemployment, which fell under 11 percent from a peak of 17 percent in 2013.
