NICOSIA - Cyprus's economy contracted by 1.4 percent in the second quarter of the year on a quarterly basis, extending a downturn on the financially troubled island which received an international bailout in March.
Preliminary data showed Cyprus's Q2 quarterly downturn was better than the first, when output contracted 1.7 percent. On a yearly basis, the economy declined 5.4 percent from 4.8 percent in the first quarter.
The data also offered a worse assessment on the depth of recession in the first quarter; earlier assessments had put the economic contraction in Q1 at 1.4 percent on a quarterly basis, and 4.4 percent on a yearly basis.
Wednesday's readout is the first comprehensive snapshot of how the island's economy fared from upheaval accompanying an EU/IMF aid package in March, conditional on the closure of a major bank and heavy losses on big deposits in a second.
Capital controls imposed by the state to prevent a run on bank deposits have further crimped economic activity. Bank transfers are now strictly vetted, and cash withdrawals by individuals cannot exceed 300 euros per day.
Negative growth rates were recorded in all sectors of the economy from construction to banking and tourism, the statistics office said in a brief statement.
International lenders expect the island nation's 17 billion euro economy to contract by 8.7 percent in 2013 and shrink by 3.9 percent in 2014 before returning to a 1.1 percent growth in 2015.