gdp

EC revises Cyprus GDP growth forecast upwards for 2024-2025

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EC revises Cyprus GDP growth forecast upwards for 2024-2025

The European Commission has published its Winter 2024 Economic Forecast, which lowers the growth outlook for this year and sets inflation on a lower downward path than projected last autumn. In Cyprus, real GDP growth slowed down to 2.5% in the first three quarters of 2023 compared to 5.8% for the same period in 2022. However, demand for tourism services continued to rebound in 2023, with arrivals increasing by 20.1%. Private consumption remained robust, supported by real wage increases and employment growth. For the whole of 2023, economic activity is expected to have grown by 2.4%. In 2024 and 2025, real GDP in Cyprus is expected to grow by 2.8% and 3% respectively. Harmonized index of consumer prices (HICP) inflation in Cyprus is set to moderate to 2.4% in 2024 and 2.1% in 2025.

Opinion: Trump’s words, military imbalance seen raising risk of war in Europe

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Opinion: Trump’s words, military imbalance seen raising risk of war in Europe

Fact: German Chancellor Olaf Scholz attended the groundbreaking ceremony for a new munitions factory and warned that Europe must move to mass producing weapons because we do not live in times of peace.

Cyprus healthier than EU but health spending less

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Cyprus healthier than EU but health spending less

Cyprus is outperforming the European Union average in various public health metrics. The average life expectancy in Cyprus is 81.7 years, which is higher than the EU average of 80.7 years. Older people in Cyprus live longer without activity limitations compared to the EU average, with men expecting 19.1 years and women 21.5 years without limitations at age 65. Cyprus has the lowest rate of preventable and treatable deaths in the EU, at less than 200 per 100,000 people. It also has the lowest rate of unmet needs for medical care in Europe, with less than one percent of people reporting unmet healthcare needs.

Despite these positive outcomes, Cyprus spends less on health than the EU average, with 9.4 percent of its GDP going to health expenditure and a per capita annual spend of €2,686, compared to the EU average of €4,028. The proportion of healthcare costs paid out of pocket in Cyprus is 10 percent, lower than the EU average of 15 percent.

However, Cyprus faces challenges with antibiotic-resistant bacteria, with 43 percent of people with bloodstream infections testing positive for such bacteria, nearly three times the EU average of 15 percent. The number of nursing graduates is also low, with 15 per year per 100,000 people, resulting in 4.8 practicing nurses per 1,000 people, which is below the EU average of 8.5. Conversely, Cyprus has five doctors per 1,000 people, which is above the EU average.

Regarding lifestyle factors, 23 percent of people in Cyprus smoke daily, which is higher than the EU average of 19 percent. Only four percent of Cypriots reported heavy drinking, significantly lower than the EU average of 19 percent. The obesity rate in Cyprus is 15 percent, slightly lower than the EU average.

A step in right direction for UK, BoE cautious

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A step in right direction for UK, BoE cautious

The text discusses the progress of the UK in cutting interest rates and the challenges involved in doing so. It mentions that wage growth is slowing, but it is uncertain if it will fall to a level consistent with 2% inflation. The unemployment rate has fallen to 3.8%, but it is no longer a reliable indicator. The Bank of England is relying on various data and surveys to make judgments about the labor market. The text also briefly mentions oil prices, gold prices, and the milestone of bitcoin breaking above ,000.

The US economy is strengthening

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The US economy is strengthening

The US economy grew at a rate of 3.3% in the fourth quarter of 2023, surpassing initial predictions of 2%. The growth is attributed to support from consumer spending and government expenditure. Wage increases exceeded increases in goods and services, leading to high levels of consumption. However, there is a possibility that increased borrowing could lead to future problems for the population. The US economy has shown resilience despite the sharp increase in interest rates. In contrast, the European economy is showing signs of slowdown, particularly in Germany. China's economy is also expected to grow at a lower rate than anticipated. The final statistics on the GDP of major international economies, including Cyprus, are yet to be seen, but there is a slowdown in growth. The focus is on the magnitude of the slowdown and whether it could lead to a recession.

IMF says global ‘soft landing’ in sight, lifts 2024 growth outlook

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The International Monetary Fund (IMF) has upgraded its forecast for global economic growth, citing faster-than-expected easing of inflation. The IMF’s chief economist, Pierre-Olivier Gourinchas, stated that a “soft landing” was in sight, but overall growth and global trade still remained lower than the historical average. The IMF forecast global growth of 3.1% in 2024, up from its previous forecast of 2.9%, and expected global trade to expand by 3.3% in 2024. However, risks such as geopolitical tensions in the Middle East and attacks in the Red Sea could disrupt commodity prices and supply chains. The IMF also warned that delays in fiscal consolidation and the potential violation of global trade rules by certain countries could impact economic activity.