articles | 02 June 2021

Cyprus unemployment 9.4%, inflation 1.5%, GDP -1.6%

Cyprus unemployment increased to 9.4% or 43,000 individuals in April (9% among men and 10% for women), from 8% (36,000) in March.

A year earlier, the rate was 7.5% or (34,000 jobless). Youth unemployment in Cyprus was 18.8% in the first three months to March (7,000), compared to 19.9% in April 2020.

In April 2021, the euro area seasonally-adjusted unemployment rate was 8%, down from 8.1% in March and up from 7.3% in April 2020.

The EU unemployment rate was 7.3% in April, stable compared with March and up from 6.7% in April 2020, Eurostat data show.

Eurostat estimates that 15.380 million men and women in the EU, 13.030 million in the euro area, were unemployed in April.

Compared with March 2021, the number of unemployed decreased by 165,000 in the EU and 134,000 in the euro area.

Compared with April 2020, unemployment rose by 1,406 million in the EU and 1,275 million in the euro area.

In April, 2.939 million young persons (under 25) were unemployed in the EU, of whom 2.348 million were in the euro area.

The youth unemployment rate was 17.1% in the EU and 17.2% in the euro area, stable in both areas compared with the previous month.

The unemployment rate for women was 7.6% in the EU, down from 7.7% in March 2021.

The unemployment rate for men was 7.0% in April 2021, stable compared with March 2021.

In the euro area, the unemployment rate for women decreased from 8.5% in March 2021 to 8.4% in April 2021, while the unemployment rate for men remained stable at 7.7%.

GDP shrinks 1.6% 

The Cypriot economy showed an annual negative growth rate of 1.6% in the first quarter of 2021, compared to the same quarter of 2020.

It was the fourth consecutive quarter of negative GDP growth amid restrictions to curb the spread of COVID-19.

Based on seasonally and working-day adjusted data, the GDP growth rate in real terms is estimated at -1,6%.

The negative GDP growth rate is mainly attributed to Hotels and Restaurants, Manufacturing, Wholesale and Retail Trade, Arts, Entertainment and Recreation.

However, compared to Q4 2020, the economy increased by 2% GDP.


 Meanwhile, according to a flash estimate from Eurostat, euro area annual inflation is expected to be 2% in May, up from 1.6% in April.

In Cyprus, inflation is expected at 1.5% in May 2021, compared to 1.2% in April and -1.4% in May 2020.

Among the main components of euro area inflation, energy is expected to have the highest annual rate in May (13.1%, compared with 10.4% in April), followed by services (1.1%, from 0.9%), non-energy industrial goods (0.7%, from 0.4%) and food, alcohol & tobacco (0.6%, stable).

Source: Financial Mirror

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