TUESDAY, 28 JUN 2022

 

CONNECT

Facebook Linked In Twitter
IMH LTD

Cyprus President To Attend Dinner For EU And NATO Leaders In Madrid

Russian Economy 'Degrading Slowly' Due To Sanctions, Claims VDL

IMH LTD

ECONOMY

EU Commission Projects Economic Slowdown And Rising Inflation For Cyprus

EU Commission Projects Economic Slowdown And Rising Inflation For Cyprus

The European Commission revised its economic projections downward for Cyprus, citing the effects of Russia’s invasion of Ukraine and the associated sanctions against Russia on the island’s tourist and services sectors.

In its spring forecasts, issued on Monday, the European Commission said that the Cypriot GDP growth will slow down to 2.3% in 2022, which is 1.8% less than its previous projections, while growth will accelerate to 3.5% the following year, in line with the previous projection issued in February 2022.

“The Cypriot economy started 2022 on a strong footing, but Russia’s invasion of Ukraine and the related sanctions are expected to impact economic activity, especially tourism and services exports, as Russia is an important market for both,” the European Commission said in its forecast for Cyprus.

Moreover, the EU Commission said that headline inflation (HICP) will register a considerable increase, reaching to 5.2% in 2022, doubling its previous projection of 2.6%, and is projected to decline to 2.7% the following year, which is significantly higher than the previous estimate.

“This is mainly due to exceptionally high oil prices, as Cyprus depends heavily on oil products. The prices of non-energy industrial products and food have also increased as a result of supply chain disruptions and the secondary impact from higher energy prices,” the Commission added.

According to the Commission, unemployment rate remained broadly stable in 2021 at 7.5%. Employment and vacancies were on the rise at the end of 2021, whereas the slowdown of economic activity “is set to put brakes on the labour market later this year.”

In 2022, unemployment is forecast to somewhat increase to 7.8%, before resuming its decreasing trend in 2023 to 7.3%, the Commission added.

The Commission however, noted that, “significant uncertainty and downside risks to the growth outlook remain, as the tourism sector and other export-oriented services sectors are particularly vulnerable to external shocks.”

Furthermore, the Commission despite the economic slowdown projects that Cyprus fiscal deficit will continue to improve, as the government phases off its pandemic related support measures.

In 2022, the deficit is expected to further improve to 0.3% of GDP and will improve marginally to 0.2% in 2023.

Public debt, after its decline to 103.6% of GDP in 2021 on the back of high nominal GDP growth and thanks to cash reserves accumulated in the previous year, is expected to decrease to 93.9% and 88.8% in 2022 and 2023, respectively, the Commission added.

MORE ON ECONOMY

Anastasiades: Cyprus Can Become A Regional Educational, Research And Excellence Centre

Cyprus can become a regional educational, research and excellence centre, said President ...

Cyprus Sales Of Petroleum Products Up 34 Percent In May, While Oil Reserves Drop 17.1 Percent

Total sales of petroleum products increased by 34% on an annual basis in May 2022, while ...

Petrides Discusses Russian Sanctions With US Secretary Of The Treasury Yellen

The US and Cyprus’ commitment to implement sanctions on Russia for its war in Ukraine was ...

FROM AROUND GOLDNEWS

   

Mandatory Face Masks Return To Pharmacies, Labs And COVID Testing Units

As COVID cases hike in Cyprus, the Cabinet decided on Tuesday to make face masks mandatory again in pharmacies, clinical labs and testing units.
   

Panayides: Cyprus Backs EU Support To Green Tech In Mediterranean

Cyprus agrees with the creation of a common platform for the supply of natural gas, as well as the EU providing financial support for innovative green ...
   

Cyprus Economic Sentiment Deteriorates In June

The economic sentiment in Cyprus deteriorated in July, pushed downwards by weaker business confidence in services, industry and retail trade.
   

Anastasiades: Cyprus Can Become A Regional Educational, Research And Excellence Centre

Cyprus can become a regional educational, research and excellence centre, said President of the Republic Nicos Anastasiades, addressing the graduation ceremony ...
   

Cyprus Sales Of Petroleum Products Up 34 Percent In May, While Oil Reserves Drop 17.1 Percent

Total sales of petroleum products increased by 34% on an annual basis in May 2022, while total petroleum reserves decreased by 17.1% (18,020 tons) at the end ...
   

Petrides Discusses Russian Sanctions With US Secretary Of The Treasury Yellen

The US and Cyprus’ commitment to implement sanctions on Russia for its war in Ukraine was the major issue of discussion between Cyprus Minister of Finance ...
   

Cyprus President To Attend Dinner For EU And NATO Leaders In Madrid

Cyprus President, Nicos Anastasiades, will attend a dinner for the EU and NATO leaders, that will take place on Tuesday in Madrid.
   

Alphamega Hypermarkets: Get Your Hands On Pelikan School Supplies Through The Stick & Win Loyalty Scheme

True to its long-established policy of rewarding its loyal customers, Alphamega Hypermarkets is giving them the opportunity to get their hands on top-quality ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

gold_june_issue
Enter_Cy_10/20-4/23

IMH LTD