recovery

COMMENT: Russian tax hikes – important but not large enough

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COMMENT: Russian tax hikes – important but not large enough

Russia has announced changes to its tax system, moving from a flat to a progressive system by 2025. The upper rate of income tax will rise from 15% to 22% and for corporate taxes from 20% to 25%. These changes are expected to reduce the budget deficit caused by increased military spending but may not be enough to prevent economic overheating. The tax hikes are modest compared to military and defense spending, which is 6% of GDP and rising. The overall fiscal stance remains expansionary, challenging the central bank’s efforts to combat inflation. Russia’s budget deficit is expected to halve this year and remain flat in 2025, while growth forecasts vary with some predicting modest growth and others more upbeat figures.

COMMENT: Russian tax hikes – important but not large enough

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COMMENT: Russian tax hikes – important but not large enough

Russia has announced changes to its tax system, including a shift to a progressive income tax system in 2025, with the upper rate increasing from 15% to 22% and corporate taxes from 20% to 25%. These changes are expected to reduce the budget deficit caused by increased military spending.

Cyprus industrial production index rises in March

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Cyprus industrial production index rises in March

The Industrial Production Index in Cyprus increased by 3.4% in March 2024 compared to March 2023. The manufacturing sector experienced a rise of 2.7%, with the water supply and materials recovery sector showing a significant surge of 23.3%. The manufacture of furniture and repair/installation of machinery and equipment rose by 11.9%. Conversely, the manufacture of paper and paper products and printing decreased by 8.9%.

Slovak Prime Minister Fico released from hospital, media says

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Slovak Prime Minister Fico released from hospital, media says

Slovak Prime Minister Robert Fico was released from the hospital in Banska Bystrica and taken to his apartment in Bratislava after recovering from an assassination attempt. The attacker, 71-year old Juraj C., hit Fico with four bullets at short range during a government meeting in Handlova on May 15.

Dollar recovers after Fed rate-cut bets fade

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Dollar recovers after Fed rate-cut bets fade

The EURUSD pair fell to 1.0830 in European trading after failing to reach a two-month high near 1.0900. ECB governing council member Klaas Knot suggested a gradual rate-cut approach based on recent data showing wage growth and improved Manufacturing PMI. The Dollar’s DXY Index recovered to 104.80 due to market sentiment. Investors are now expecting the Fed to start reducing interest rates in the last quarter of the year.

Larnaca port and marina in flux as state replaces Kition

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Larnaca port and marina in flux as state replaces Kition

Larnaca’s port and marina are now under state control following the collapse of a major development project. The Port Authority has taken over operations, deploying additional staff and private machinery services. The future management of the marina is uncertain, with discussions on potentially separating the port and marina projects gaining traction. The fate of Kition Ocean Holdings’ employees remains unclear, with trade unions advocating for their rights. The government is re-evaluating the initial development plan and considering future steps for the projects.

Are your breast implants making you ill?

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Are your breast implants making you ill?

Breast Implant Illness is a term used to describe a range of symptoms attributed to implants such as fatigue, joint pain, cognitive difficulties, and other systemic issues after having the procedure.

Amalthea aid initiative to determine timing of state recovery of Larnaca port

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Amalthea aid initiative to determine timing of state recovery of Larnaca port

The Cyprus Port Authority has regained control of Larnaca Port after terminating the concession agreement with Kition Ocean Holdings. The transition is going smoothly, with collaboration between CPA and Kition to ensure uninterrupted service provision. Pending issues include the handling of the ‘Amalthea’ aid initiative, with an American ship being loaded and set to depart soon. CPA has started procuring services from private companies and reinforcing existing staff with personnel from other locations. The government’s decision to terminate the concession was due to delays and disagreements, bringing Larnaca Port back under state control.

German business sentiment stagnates in May

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German business sentiment stagnates in May

German business morale stagnated in May, with the Ifo institute reporting that the business climate index remained constant at 89.3, falling short of the forecasted improvement. The German economy is expected to have slow progress in its recovery this year, with companies being less satisfied with the current business situation. Despite some sectors recovering, the overall outlook remains cautious.

This is what we did and this is what we got from the EU Recovery Fund

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This is what we did and this is what we got from the EU Recovery Fund

Cyprus has managed to promote important reforms and launch public investments through the Recovery Plan, with more than 40 sponsorship projects announced. The amount available through the sponsorship projects is €460 million. The country has received €262 million from the European fund, with additional tranches expected to be disbursed later this year.