Cyprus reveals worst economic contraction for 40 years

<p>Cyprus’ economy has contracted.</p>

Cyprus has revealed that its economy is contracting faster than at any point in 40 years.

Data released by the country's government showed that its economy fell 1.8 per cent between April and June compared with the first quarter, which was the eighth successive quarterly fall in a row for the country.

It also announced that its economy shrank 5.9 per cent in the second quarter compared to the same period last year, which is in excess of the figure that had been predicted by analysts.

The contraction means that the Cyprus economy is now shrinking faster than at any point since the middle of the 1970s.

Cyprus has found the recovery from the global financial slowdown harder than most countries in Europe and has slid further into recession on the back of the figures unveiled today (September 6th).

Data recently released by the European Commission showed the euro area's economy grew by 0.3 per cent during the second quarter of the year.

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