Nicosia - AFP
Cyprus\'s struggling euro economy moved deeper into recession in the second quarter, contracting 5.9 percent from a year earlier, according to an official estimate on Friday. The figure was worse than the 5.4 percent flash estimate issued last month for Q2. The 5.9-percent contraction compared with a 5 percent year-on-year drop in Gross Domestic Product in the first quarter, adjusted data showed on Friday. It is reported to be the largest contraction of the crisis-hit Cyprus ecnomy since the mid 1970s. The decline in the April-to-June period, the eighth successive quarterly fall, is the first to measure the economy\'s performance since a March deal with the European Union and the International Monetary Fund to rescue the economy. The latest estimate showed that GDP shrank 1.8 percent from the first quarter, when it fell by 1.7 percent. Tourism revenue helped blunt the effects of the downturn, but arrivals have dipped in recent months to thwart official predictions of another bumper year in the key sector. The statistical service said construction, manufacturing, banking, transport, trade, tourism and services all declined from April to June. In May, Cyprus received its first tranche of a 10-billion-euro ($13.3-billion) rescue package negotiated with the European Commission, European Central Bank and International Monetary Fund to bail out its troubled economy and oversized banking system. The deal also involved the closure of the island\'s second-largest bank Laiki and a large \"haircut\" on deposits above 100,000 euros at the largest lender, the Bank of Cyprus. The country is now waiting for its next instalment of cash which needs to be approved by eurozone finance ministers on September 13 following a recent visit by the troika to carry out its first review of the adjustment programme. Parliament on Friday approved 14 troika-requested bills to raise revenue and restructure the banking system to ensure Nicosia receives its second disbursement of 1.5 billion euros. According to troika projections, the Cypriot economy is expected to contract 8.7 percent this year and 3.9 percent in 2014 before recovering 1.1 percent in 2015.