The economy of bailed-out Cyprus remained in recession in the third quarter this year but the GDP contraction slowed down as a result of a slight increase in tourism revenue, the island's Statistical Service announced on Friday.

Cyprus's GDP slipped by 2 percent in the third quarter on a year on year basis compared to 3.6 percent in the second quarter and 5.6 percent in the corresponding period last year.

On a quarterly basis Cyprus's GDP dropped by 0.4 percent in the third quarter.

The eastern Mediterranean island received a 10-billion-euro (12.5 billion U.S. dollars) assistance package from the Eurogroup and the International Monetary Fund in March 2013 after being in recession since the third quarter of 2011.

A 3 percent decline is expected at the end of the year, much lower than original projections by international lenders, giving credibility to the government's predictions that the economy in 2015 will mark a turn.

A mild growth of 0.5 percent is projected for next year, followed by a healthy 2.6 percent increase in GDP in 2016. Endit

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