Business

Cyprus GDP expected to grow, inflation to continue decreasing

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Cyprus GDP expected to grow, inflation to continue decreasing

The European Commission’s interim winter forecast indicates that Cyprus is expected to see its GDP grow by 2.8% in 2024 and by 3% in 2025. Inflation in Cyprus is forecasted to slow to 3.9% in 2023, down from 8.1% in 2022, and is expected to be further contained to 2.4% in 2024 and 2.1% in 2025. The main drivers of GDP growth in Cyprus are strong domestic demand, strategic investments, and lower energy prices. The Recovery and Resilience Mechanism is expected to support investments that will strengthen growth. Economy Commissioner Paolo Gentiloni presented the winter forecast, noting that the European economy is entering 2024 on a weaker footing than previously predicted. The EU and eurozone growth forecasts for 2023 have been revised to 0.5%, and for 2024, they have been adjusted to 0.9% in the EU and 0.8% in the eurozone. The commission predicts an increase in economic activity in 2025, with growth of 1.7% in the EU and 1.5% in the eurozone. Inflation in the EU is expected to decrease from 6.3% in 2023 to 3.0% in 2024 and further to 2.5% in 2025. In the Eurozone, inflation is projected to slow from 5.4% in 2023 to 2.7% in 2024 and to 2.2% in 2025. The contribution of net exports to Cyprus’ economy is expected to remain weak due to economic uncertainty in trading partners and strong demand for imports. Real GDP growth in Cyprus slowed to 2.5% year-on-year in the first three quarters of 2023, but tourism services demand continued to recover. Economic activity in the EU is expected to pick up in 2024 after a weak start to the year. Lower energy prices have led to a faster-than-expected decline in headline inflation in 2023. The forecasts are subject to uncertainty due to geopolitical tensions and the risk of conflict expansion in the Middle East. Rising shipping costs due to trade disruptions in the Red Sea are expected to exert only a slight influence on inflation. Risks to core growth and inflation forecasts include consumption, wage growth, profit margins, interest rates, and the impact of extreme weather events due to climate change.

Finance Minister says new support measures imminent , — electricity subsidy may be renewed

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Finance Minister says new support measures imminent , — electricity subsidy may be renewed

Finance Minister Makis Keravnos announced that new support measures will be discussed at the next Cabinet meeting and will subsequently be announced to the public. Keravnos mentioned the possibility of extending the electricity subsidy, which was launched in October and is due to expire at the end of the month. The fiscal impact of the subsidy is estimated at €45 million, and Keravnos assured that the cost is within the expected framework and that the government remains committed to fiscal discipline. The government plans to support vulnerable groups and middle-income households. Keravnos emphasized that while the European Commission requires targeted support measures, which are considered more effective, the government does not rule out the possibility of implementing horizontal measures if needed. The high cost of electricity is a significant issue and a top priority for the country. The scaled electricity subsidy is targeted and is among the priorities under consideration. The appointment of the Financial Commissioner and the governor of the Central Bank of Cyprus (CBC) are upcoming matters, with the governor being appointed by the president of the Republic of Cyprus.

CySEC awards staff members

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CySEC awards staff members

The Cyprus Securities and Exchange Commission (CySEC) awarded three staff members in a ceremony for the new year. The awards were for the categories “Unsung Hero,” “Source of Inspiration,” and “Innovation.” Lina Constantinou received the “Unsung Hero” award, Irene Pidia Spyrou was awarded the “Source of Inspiration,” and Panagiotis Tryfonos won the “Innovation Award.” CySEC employees nominated their colleagues for these awards. The Chairman of CySEC, George Theocharides, mentioned that the awards process demonstrated great teamwork and emphasized the importance of building a positive work culture and individual responsibility at CySEC.

Outlook for 2024: Automation tools and AI in the financial services industry

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Outlook for 2024: Automation tools and AI in the financial services industry

Fact: In 2024, significant changes and transformations are expected to happen in the financial services industry due to advanced automation tools and the influence of AI. These changes include streamlining back-office operations, reshaping the collaboration between humans and AI, and catching up with fraudsters’ new tricks. Automation and AI technology can efficiently handle repetitive tasks, monitor patterns, and detect irregularities, while the human workforce offers critical thinking and adaptability. The use of automation systems in financial services has increased, with around 82% of Admirals’ client onboarding applications being processed automatically in 2023.

Ukraine needs $486 bln to recover, rebuild after nearly two years of war – World Bank

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Ukraine needs $486 bln to recover, rebuild after nearly two years of war – World Bank

Rebuilding Ukraine’s economy after Russia’s invasion is expected to cost 6 billion, which is 2.8 times its expected economic output in 2023. This estimate covers the period from the invasion in 2022 through the end of 2023 and includes the direct physical damage to infrastructure, the impact on people’s lives and livelihoods, and the cost to “build back better.” The estimate has increased from 1 billion last year. The report identifies housing needs as the highest priority, followed by transport and commerce and industry. The direct damages from the war have reached almost 2 billion, with losses concentrated in certain regions. Disruptions to economic output and trade, as well as other war-related costs, are expected to add another 9 billion. The report highlights the urgent need for billion to cover repair, recovery, and reconstruction priorities in 2024. The Ukrainian government has already allocated some funds for this purpose and plans to undertake various reforms. Despite the war, the Ukrainian economy has shown resilience, with foreign direct investment flowing into the country. The number of displaced Ukrainians has decreased compared to previous assessments.

Yachting sector poised for growth

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Yachting sector poised for growth

The yachting sector is expected to grow in Cyprus and internationally in 2024. Nikiforos Pampakas, the general manager of Limassol Marina, stated that Cyprus is becoming an attractive destination for yachts and recreational boats. The expansion of berth capacity at the marina will allow for more vessels and contribute to the sector’s positive impact on the economy. Pampakas mentioned that the volume of activity at the marina and positive feedback from other tourism sectors are reasons for optimism. He also noted that the Limassol Marina, which is approaching its tenth anniversary, aims to maintain its status as a premier destination by continuing to offer high-quality services.

MicroStrategy holds $8.8 bln Bitcoin, 10 times more than Tesla, Coinbase

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MicroStrategy holds $8.8 bln Bitcoin, 10 times more than Tesla, Coinbase

MicroStrategy has the largest Bitcoin holdings among public companies, worth over .8 billion. This is 17 times more than Tesla and 21 times more than Coinbase. MicroStrategy has been investing in Bitcoin since 2021 and has doubled its investment in less than a year. Other major firms have also been buying Bitcoin, pushing their total holdings to impressive figures. Marathon Digital Holdings ranks second with 1.5 million in BTC holdings, while Tesla dropped to third place with 1.7 million. In total, 33 public companies have invested in Bitcoin, with a combined value of over billion. American and Canadian companies lead in BTC investments.

Samsung FB fan page more popular than Ronaldo, Real Madrid, Coca-Cola

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Samsung FB fan page more popular than Ronaldo, Real Madrid, Coca-Cola

Samsung commands a 24% share in the worldwide smartphone market and has the most popular Facebook fan page in the world with almost 160 million fans. Facebook is the digital channel with the most influence on purchasing decisions. Samsung has almost 38 million more followers on Facebook than Cristiano Ronaldo, the most-followed person on Instagram and Facebook. Global brands dominate the list of most popular fan pages on Facebook.

Foreign investors want more info on energy, relocation

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Foreign investors want more info on energy, relocation

Foreign investors active in Cyprus attended a “Foreign Investors Dialogue with the Government” event where they were informed about actions being implemented or planned by the government. The government aims to make Cyprus an attractive destination for living, working, and doing business. Some of the actions mentioned include new housing policies, the possibility of submitting electronic applications for renewable energy projects, the implementation of the Strategic Investments Law, and improvements in the education system for children of foreign workers. The government has also introduced measures to improve the business environment, support innovation and entrepreneurship, and streamline licensing procedures. The Company Facilitation Unit has registered almost 2,000 foreign companies since its establishment. The government is also addressing housing affordability and delays in the naturalization process. The labor market is being made more accessible for third country nationals studying in Cyprus.

Cyprus beer exports surge in first eight months of 2023

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Cyprus beer exports surge in first eight months of 2023

– The total volume of beer deliveries in Cyprus from January to August 2023 increased by 0.9% annually, reaching 29.48 million litres.
– Beer exports from Cyprus during the same period surged by 18%, amounting to 2.09 million litres.
– Domestic beer deliveries in Cyprus for the January-August 2023 period slightly decreased by 0.2% compared to the same period in 2022, totaling 27.4 million litres.
– In August 2023, beer deliveries in Cyprus were 5.2 million litres, a 1.5% annual increase.
– Beer deliveries for August 2023 alone saw a 114% increase compared to August 2022, with a total of 0.36 million litres.