Economy

Cyprus, ’ economy in January and February 2024

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Cyprus, ’ economy in January and February 2024

The Cyprus Statistical Service (Cystat) released its bimonthly bulletin “Monthly Economic Indicators” covering January to February 2024. The Manufacturing sector saw a 3.2% increase in January 2024 compared to January 2023. Motor vehicle registrations surged by 45.0% in January and February 2024, with private saloon cars increasing by 50.1%. The Consumer Price Index rose by 1.8% during the same period. Imports of goods decreased by 32.2%, while exports of goods decreased by 3.8%. Tourist arrivals increased by 1.6% in January and February 2024 compared to the same period in 2023.

Europe turns to ECB after U.S. inflation selloff

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Europe turns to ECB after U.S. inflation selloff

Stocks and the euro were steady ahead of an European Central Bank meeting on Thursday, after stubborn U.S. inflation numbers triggered the biggest global market selloff in months and left Japan’s yen at a new 34-year low.

Portugal’s New Minority Government Orders Tax Cuts

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Portugal's New Minority Government Orders Tax Cuts

Portugal’s new centre-right Prime Minister Luis Montenegro announced income and corporate tax cuts in his first speech to parliament. Montenegro’s Democratic Alliance party, which has no majority, refused to make an accord with the far-right Chega party. Income tax will be cut by 1.5 billion euros, with middle-income earners benefiting most. Company taxes will be reduced from 21 percent to 15 percent over three years. The government’s programme will only pass in parliament with the abstention of the Socialists, who have 78 seats compared to the Democratic Alliance’s 80. Chega made significant gains in the March elections, and the Socialists have said they will oppose many government measures. Socialist leader Pedro Nuno Santos has warned that it will be “practically impossible” for his party to support the government’s 2025 budget.

Small business owners ask U.S. House tax writers to extend Trump-era deductions • Pennsylvania Capital-Star

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Small business owners ask U.S. House tax writers to extend Trump-era deductions • Pennsylvania Capital-Star

The text describes how economists and small business owners are urging U.S. lawmakers to extend or make permanent the Trump-era tax cuts, particularly the deductions that allowed them to reinvest in their operations. The Tax Cuts and Jobs Act of 2017 allowed business owners to deduct up to 20% of qualified business income and temporarily cut taxes on new equipment purchases. If Congress does not extend these deductions, small business owners could face significant tax hikes and be at a disadvantage compared to larger corporations.

Euro remains vulnerable after ECB keeps rates steady

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Euro remains vulnerable after ECB keeps rates steady

The European Central Bank (ECB) decided to hold its Main Refinancing Operations Rate steady at 4.5% to maintain downward pressure on consumer price inflation. ECB President Christine Lagarde warned of a weak economy with risks to growth tilted to the downside. The strong US Dollar is also contributing to the weakness in the EURUSD pair. The Dollar Index (DXY) is near a four-month high, and market expectations for Federal Reserve rate cuts have been pushed back due to strong US consumer price inflation and core Producer Price Index data.

Tax Department reports , €700 million increase in collections

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Tax Department reports , €700 million increase in collections

Authorities collected €700 million more in taxes in 2023 compared to 2022, totaling €6.7 billion. The state is owed €2.5 billion in taxes, with €1.1 billion deemed doubtful as to whether it can be collected. The Tax Department is implementing a new software system to improve tax collectability by 2025. The department has imposed an additional €500 million in taxes and cleared about 2.2 million tax declarations. Penalties for tax laggards need to be more deterrent, according to Tax Commissioner Sotiris Markidis.

Limassol Court dismisses depositor claims over 2013 haircut

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Limassol Court dismisses depositor claims over 2013 haircut

The Limassol District Court dismissed lawsuits filed by depositors against Cyprus Popular Bank, the Central Bank of Cyprus, and the Republic of Cyprus regarding the 2013 haircut. The Court ruled that the defendants did not act negligently or breach any duty, and the resolution measures did not put depositors in a worse position than a bank liquidation scenario. The claims of constitutionality and human rights violations were deemed non-essential and unsubstantiated.

Vietnam tycoon sentenced to death in $12 billion fraud case, state media reports

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Vietnam tycoon sentenced to death in $12 billion fraud case, state media reports

Real estate tycoon Truong My Lan was sentenced to death in Vietnam for her involvement in a .46 billion financial fraud case. Lan, the chairwoman of Van Thinh Phat Holdings Group, was found guilty of embezzlement, bribery, and violating banking rules. The trial was part of a crackdown on corruption led by the ruling Communist Party, resulting in the prosecution of many officials and executives. Lan and her accomplices were accused of siphoning over billion from Saigon Joint Stock Commercial Bank through unlawful loans to shell companies. Lan plans to appeal the verdict.

Posidonia 2024 marks the rebirth of the Greek shipbuilding industry

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Posidonia 2024 marks the rebirth of the Greek shipbuilding industry

Posidonia 2024 is set to mark the rebirth of the Greek shipbuilding industry, with over 85 shipyards from 26 countries confirmed to showcase their vessel design and production innovations from June 3-7.

Our View: MPs, ’ ATM gripe undermines profitable business model

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Our View: MPs, ’ ATM gripe undermines profitable business model

Deputies in Cyprus criticized banks for not having enough ATMs, especially in rural areas, during a House commerce committee meeting. The chairman of the committee stated that banks were lacking social responsibility and prioritizing profit over serving the community. Despite the criticism, banks explained that operating ATMs is costly and they plan to reduce them to improve profitability, which is necessary for a dynamic economy. The closure of the cooperative bank was also mentioned as a result of prioritizing social responsibility over profits.