The Cypriot economy witnessed a decrease of €44.1 million in total deposits in June 2024, with a growth rate of 2% and a net increase in loans by €234.6 million. Despite the decline in deposits, the sector displayed diverse financial behaviors, indicating active financial movements and sectoral diversity in economic behaviors.
Cyprus maintains a 3% inflation rate in June, showing resilience amidst global economic challenges. Housing costs surged by 6.4%, while energy prices rose by 9%, balanced by a 1.5% decrease in transportation expenses, highlighting the island nation’s economic stability amid sectorspecific fluctuations.
Cyprus experienced robust growth in various sectors in 2022, including transportation, accommodation, information and communication, real estate, professional services, education, healthcare, arts, entertainment, and other services. The nation’s economic performance showcased remarkable progress, with employment rates also on the rise, reflecting a vibrant and promising outlook for the country’s future.
The economic pressures facing Cypriot households and businesses have reached critical levels, with skyrocketing prices, rising interest rates, and inadequate government aid creating a dire situation. Syprodat’s urgent call for action underscores the need for immediate measures to combat inflation and safeguard the socioeconomic wellbeing of the nation, as the purchasing power dwindles and threatens both livelihoods and business sustainability.
The Cyprus construction sector is thriving, with an 8.3% increase in building permits signaling strong economic growth and investor confidence. This surge reflects a robust demand for residential and commercial spaces, underlining developers’ optimism in Cyprus’s real estate market.
Cyprus is advancing with its economic recovery plan by requesting €77 million from the EU’s Recovery and Resilience Facility. The country has met 16 milestones towards a total of €1.2 billion aimed at digital transformation, environmental sustainability, and economic resilience, showcasing its commitment to EU goals.
In the first half of 2024, Cyprus accomplished a fiscal surplus of €590.6 million, marking 1.9% of its GDP, a significant increase from the previous year. This achievement reflects the country’s economic resilience and prudent fiscal strategies amidst global challenges, showcasing its financial strength in uncertain times.
Cyprus is considering state salary reforms to address disparities between public and private sectors, including reducing state salaries and abolishing the Cost of Living Allowance, following IMF consultations. These reforms aim to align wages with productivity levels and ensure economic sustainability.
Cyprus showcases economic resilience through a €1.2 billion recovery plan, private banking awards, and a €351.3 million supplementary budget. With agricultural conferences, banking accolades, and collaborations with the European Investment Bank, Cyprus is adapting and growing amidst challenges.
The Cyprus Borrowers Association hails the government’s extension of support measures to ease economic strain on households and businesses, focusing on cutting lending rates and reducing nonperforming loans. Finance Minister Makis Keravnos anticipates progress by bridging the gap between deposit and loan rates, aiming to boost economic activity and alleviate financial burdens on Cypriots.
