UPDATE 1-Weak construction crimps Cyprus growth in Q3

* Tourism, banking lift economy * Construction still negative (Releads, adds detail, table) NICOSIA Nov 12 (Reuters) - Cyprus' economy grew for the third quarter running, data showed on Friday, but less quickly than expected as a resurgence in tourism and banking was offset by continued weakness in the island's construction industry. Gross domestic product grew 0.6 percent in the third quarter from the second and accelerated to a year-on-year rise of 1.7 percent from the second quarter's 0.4 percent, the statistics department said. The headline figure fell short of finance ministry estimates of 0.8 percent. "The improvement... may be attributed to the improved performances ... in tourism, transport, trade and banking activities," the statistics department said in a statement. Construction still remained negative, however. Tourism, which accounts for about 12 percent of the Cypriot economy, saw a 1.2 percent increase in arrivals in the first 10 months of the year. Arrivals fell 10.9 percent in a recession-scarred 2009. The island is the second smallest economy in the euro zone, with its 16.9 billion euro GDP representing about 0.2 percent of total economic output. ****************************************************************** KEY FIGURES (PCT) Q3 2010 Q2 Q1 Q4 2009 Q3 0.6 0.5 0.4 -0.1 -0.7 (q/q)* 1.7 0.4 -1.2 -2.9 -2.7 (y/y) 1.5 0.2 -1.2 -2.7 -2.7 (y/y)* ****************************************************************** seasonally adjusted (Writing by Michele Kambas; editing by John Stonestreet) Keywords: CYPRUS GDP/ (michele.kambas@thomsonreuters.com;357 22469607; michele.kambas.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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