articles | 01 February 2024

Cyprus economic climate improves in January

The economic climate in Cyprus showed signs of improvement in January 2024, according to a report released this week by the University of Cyprus’ Economic Research Centre (CypERC).


The Economic Sentiment Indicator (ESI) increased by 2.3 units compared to December 2023, primarily attributed to a strengthening business environment in the services sector.

The report highlighted positive assessments of the business cycle for the current and upcoming quarters, despite a further deterioration in responses regarding the recent economic situation of businesses. The construction sector, however, experienced a decline in climate due to more pessimistic evaluations of ongoing projects and workforce expectations for the next quarter. In contrast, the business climate in retail trade and manufacturing remained relatively stable compared to December. Regarding consumer sentiment, the CypERC noted that it remained steady in January, remaining at the level observed in December 2023.

While consumers expressed stronger intentions for significant purchases, assessments of households’ recent economic situations and expectations for the country’s future economic conditions were more negative than in December.

The report also noted that the Economic Uncertainty Index decreased in January, although it remained relatively elevated. Moreover, manufacturing experienced a reduction in uncertainty, while the services sector maintained a relatively high level despite a decrease in January.

Finally, the report said that increased uncertainty was observed among businesses in retail trade and construction, as well as among consumers.


Source: Cyprus Mail

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