employment

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.

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 predicts that Cyprus will see further growth in its Gross Domestic Product (GDP) in 2024, with an expected rise of 2.8 percent, and an increase of 3 percent in 2025. Inflation in Cyprus is forecasted to slow to 3.9 percent in 2023, down from 8.1 percent in 2022, and is expected to be further contained to 2.4 percent in 2024 and 2.1 percent in 2025. The main driver of GDP growth in Cyprus is projected to be strong domestic demand, with significant contributions from strategic investments and lower energy prices. Growth is also expected to be supported by investments from the Recovery and Resilience Mechanism. However, net exports are expected to contribute weakly to the economy due to economic uncertainty in Cyprus’ main trading partners and strong demand for imports driven by investments. The European Commission revised the growth forecasts for the EU and the eurozone for 2023 to 0.5 percent and adjusted the 2024 forecasts to 0.9 percent for the EU and 0.8 percent for the eurozone. Inflation in the EU is forecasted to decrease from 6.3 percent in 2023 to 3.0 percent in 2024, and further to 2.5 percent in 2025. In the Eurozone, inflation is projected to slow from 5.4 percent in 2023 to 2.7 percent in 2024, and to 2.2 percent in 2025.

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.

Three women arrested for illegal employment, forgery

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Three women arrested for illegal employment, forgery

Three women, aged 39, 53, and 60, were arrested on Tuesday for illegal stay, illegal employment, forgery, impersonation, and securing registration by false representation in the Republic. They were apprehended during an immigration service operation at a hotel in the Paphos district, where they were found to be working illegally. The women had also registered in the social insurance system with false data. The Paphos CID is currently investigating the case.

End of delays: In one month the statutory pension for young pensioners – How many benefit

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End of delays: In one month the statutory pension for young pensioners - How many benefit

The fact described in the text is that the Greek government has implemented a policy to improve the daily lives of citizens by addressing problems and correcting distortions, with the aim of improving their quality of life. This policy includes the timely payment of pensions for new retirees within one month of reaching retirement age or the desired date of receiving their pension. The Ministry of Labor and Social Security has announced that the timely payment of the first installment of the pension has started in September 2023 and will be completed in January 2024, benefiting over 6,000 new retirees annually and putting an end to past delays. The acceleration of the payment of all benefits and allowances provided by the Social Security Services is a priority for the Ministry in the framework of the Governance Program, and it is being implemented with specific results. The Minister of Labor and Social Security, Giannis Panagiotou, stated that the choice of the pension as the first payment to be made on time to all beneficiaries is indicative of the minimum appreciation that the state should show towards workers who have been consistent in paying their contributions to the Social Security Fund. The government is expected to fulfill its obligations promptly when workers transition from employment to retirement.

Cyprus theater unions respond to Federation’s statement

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Cyprus theater unions respond to Federation’s statement

The announcement of the Federation of Theatre Organizations of Cyprus is seen as a setback against actors and their pursuit of labor rights, according to their unions. The Union of Actors of Cyprus and the Theatre Artists of PEO expressed surprise at the announcement made by the collective body of the five historic theaters of Cyprus. The actors’ unions have consistently faced resistance from the Federation when seeking negotiations for the renewal of the Collective Agreement. The unions state that they do not compromise on issues regarding the minimum wage and the duration of contracts. They accept the Federation’s proposal for a reduction in the amounts of the Welfare Fund and the non-payment of the 13th salary for the first half of 2024. The theater organizations had the opportunity to revise their proposals based on the criteria of the Agreement but did not do so. The actors’ bodies have achieved the reintegration of the Collective Agreement into the Thymeli Plan as a prerequisite for public funding. The renewal of the Collective Agreement of the Free Theatres has been pending since 2012, and the theater organizations have consistently refused to meet with the unions to negotiate. The theater organizations rejected essential articles of the agreement, including the minimum wage, duration of employment, and payment of funds. The unions filed a complaint with the Ministry of Labor in 2022, and the Ministry determined that the Collective Agreement remains in force. The unions have repeatedly invited the theater organizations to meet and discuss, but the organizations have refused. The unions emphasize the need for unity and support to find real solutions and demand better treatment of Culture and its people from the State.

Government slashes sick leave for civil servants

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Government slashes sick leave for civil servants

The Cyprus government has decided to reduce sick leave days for civil servants from 42 days to 28 days. The period of absence without a medical certificate has also been reduced from eight days to six days. The government aims to boost productivity and modernize public services. The new regulations include three six-month periods of sick leave extensions for chronic patients, with varying levels of pay. The requirement for approval of sick leave extensions by a medical council has been eliminated. The government has also implemented other measures to reform public services, such as facilitating remote working and introducing flexible work hours. The government has sought assistance from the International Monetary Fund to rationalize the state payroll. The decision to reduce sick leave entitlement was made due to past cases of misuse and the observation that most civil servants do not fully utilize their entitled sick leave days. The government has also approved a policy framework for flexible forms of employment in the public service, including remote work and flexible working hours. Civil servants can work from home certain days of the week or for a continuous period during the year. They can also choose to work reduced hours if covered by the relevant legislation. The extension of flexible working hours from 1½ hours to 2 hours has also been implemented.

A ceiling on the benefits of former Presidents of the Republic and Parliament is being discussed in Institutions – Who and how much have they received so far

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A ceiling on the benefits of former Presidents of the Republic and Parliament is being discussed in Institutions - Who and how much have they received so far

According to the Auditor General, the pension of a former President of the Republic amounts to €8,000 per month, and therefore "is not a person without means to buy a vehicle with their own funds." The proposal suggests limiting the benefits of acquiring a car and employment allowance for secretaries to five years instead of lifetime for former Presidents of the Republic and former Presidents of the House of Representatives. The proposal also suggests that the employment allowance for secretaries should be paid directly by the Republic on behalf of the official, and that it should be based on a private law employment contract with a corresponding salary scale. In addition, it proposes that in case the officials request security measures from the Ministry of Justice, a decision of the Council of Ministers will be required, determining the duration and the reassessment of the necessity, with notification to the House of Representatives. The President of the House of Representatives, Annita Demetriou, expressed her intention to submit a bill on the same issue, stating that lifelong benefits should be abolished. The General Auditor, Odysseas Michaelides, noted that the pension of a former President of the Republic amounts to €8,000 per month and therefore they are not a person without means to buy a vehicle with their own funds. The proposal also suggests that the employment allowance for secretaries should be examined for its proper use, and that a nominal list of the people employed by former officials as secretaries should be provided to verify the correct use of the allowance. The Department of Electrical and Mechanical Services keeps records of the vehicles of officials, including the cost of purchase and maintenance. The vehicles are for exclusive use, and the fuel is paid by the Republic of Cyprus. The proposal to limit the benefits of former officials has been discussed in the Institutions Committee, and the discussion will continue after a research is conducted on the practices in other EU member states. Various Members of Parliament expressed their opinions on the issue, with some supporting the proposal to limit the benefits and others opposing it.

The first six phases of the tax transformation will be completed by March, says Giorgos Syrichas

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The first six phases of the tax transformation will be completed by March, says Giorgos Syrichas

The Phase 2 of the tax transformation project, which involves green taxation and compensatory measures, is currently underway, according to the economist of the Center for Economic Research (CER) and member of the project's advisory committee. The first six phases of the project will be completed by March 2024, followed by the submission of preliminary proposals. The project aims to assess the impact of green taxes on households and businesses and determine compensatory measures to offset any negative effects. These measures can include monetary refunds or incentives to accelerate the green transition. The project is a European obligation for Cyprus and is included in the Recovery and Resilience Fund to be implemented in 2024. The goal of the project is to develop a new integrated tax system that is simple, transparent, reduces inequalities, promotes economic growth and employment , supports innovation, and ensures the sustainability of public finances. The CER has statistical models and tools to measure the impact of the project on households and businesses. Suggestions and feedback on the project can be submitted through the CER's website.

Job vacancies are a threat – Business staffing is a challenge in the new year

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Job vacancies are a threat - Business staffing is a challenge in the new year

Cypriots and generally community members refuse to fill the gaps in the Cypriot labor market. The unemployment rate is at 5.8% in the third quarter, with 28,504 unemployed individuals. There are thousands of job vacancies, particularly in sectors such as tourism, hospitality, agriculture, and construction. The lack of investment by Cypriot businesses in increasing productivity is also a problem. The abolition of the favorable employment status for asylum seekers will create a significant gap in the labor market, as approximately 15,000 asylum seekers are currently employed. The government has promised to address this issue and simplify the process for hiring workers from third countries. They are also considering bilateral agreements with countries like India, Moldova, and Georgia for organized labor migration.