Economy

Our View: Government must listen to reason over relief measures

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Our View: Government must listen to reason over relief measures

The IMF was critical of the government’s decision to extend ‘horizontal’ support measures, such as zero VAT and electricity bill subsidies, despite advising against it. The IMF expressed concerns that these measures could negatively affect public finances and undermine efforts to control inflation. The IMF also recommended avoiding indexing adjustments of wages, particularly in the public sector, to reflect macroeconomic developments and productivity increases.

Russia needs new approach to migration after concert attack, Putin says

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Russia needs new approach to migration after concert attack, Putin says

Russian President Vladimir Putin called for a new approach to migration after Tajiks living in Russia were detained for a deadly attack on a concert hall outside Moscow. Islamic State claimed responsibility, but Russia suspects Ukraine’s involvement. Putin emphasized the need to update migration policy to ensure only those who respect Russian culture can live and work in the country. Despite limitations, migrants from Central Asia play a vital role in Russia’s economy. Putin stressed the importance of preserving interethnic harmony and cultural identity. Tajiks have been leaving Russia since the attack, with reports of police raids against unregistered migrants.

Shell says landmark climate ruling obstructs fight against climate change

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Shell says landmark climate ruling obstructs fight against climate change

Shell argued in a Dutch court that a 2021 order to cut greenhouse gas emissions lacks legal basis and would hinder the fight against climate change. The order required Shell to reduce carbon emissions by 45% by 2030 from 2019 levels, including emissions from its products’ buyers and users. Shell’s lawyer stated that implementing the ruling would force the company to shrink its business and customers to switch to other fuel suppliers. Despite objections, the environmental group behind the case expressed confidence in convincing the judges that Shell must comply with international climate agreements. Shell recently revised its carbon reduction targets, aiming for a 15-20% reduction in net carbon intensity of its energy products by 2030. The court is expected to issue a verdict later this year, with a potential further appeal to the Supreme Court.

Russian billionaires see collective wealth near $600 bln – Forbes

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Russian billionaires see collective wealth near $600 bln – Forbes

Russia’s richest people saw their fortunes increase by billion over the past year, reaching a collective wealth of 7 billion. Vagit Alekperov, former president of Lukoil, is now the wealthiest person in Russia. The total wealth of Russian billionaires had been estimated at 6 billion before the Ukraine invasion in 2021. Despite Western sanctions, which caused their total wealth to drop to 3 billion in 2022, high commodity prices and war-focused economic growth have helped in the recovery. Alekperov’s fortune rose to .6 billion, securing his top spot in Russia. Leonid Mikhelson from Novatek is in second place, with a wealth of .4 billion. Putin has praised the resilience of the Russian economy against Western sanctions, emphasizing the country’s GDP growth of 3.6% last year. However, the economy’s heavy reliance on state-funded military production for the war in Ukraine poses challenges for improving living standards in Russia. The IMF predicts a GDP growth of 2.6% for Russia this year, but foresees difficulties due to population outflows and technology shortages. Russian business people have benefited from the Western corporate exodus, with many companies selling assets cheaply or having their operations seized.

Cyprus hospitality sector is key economic contributor

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Cyprus hospitality sector is key economic contributor

The accommodation and food service sector was the second-largest contributor to both the economy and employment in Cyprus in 2021. Specifically, it accounted for 6 per cent of the added value of the business economy in Cyprus and 13.5 per cent of employment in the country.

Fuel prices surge as subsidy is abolished

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Fuel prices surge as subsidy is abolished

Increases in the average price of 95 octane petrol were observed in Limassol, Nicosia, and Famagusta after the subsidy of 8.3 cents per liter was abolished on April 1st. The largest increase was in Limassol at 9.2 cents, while in Paphos, the increase was only 8 cents. Nicosia had the highest price variation for 95 octane petrol on April 1st.

German tourists boost optimism for Paphos tourist season

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German tourists boost optimism for Paphos tourist season

Germany is expected to contribute significantly to the tourist traffic in Paphos this summer, with a surge in visitors offsetting losses from Russia and Israel. Stakeholders are focusing on improving air connectivity and promoting the destination in the German market to extend the tourist season. The positive outlook for 2024 is also influenced by high visitation from Britain.

HSBC setting up $1 bln growth fund to scale up digital platform businesses in Southeast Asia

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HSBC setting up $1 bln growth fund to scale up digital platform businesses in Southeast Asia

HSBC is setting up a billion growth fund called ASEAN Growth Fund that provides lending to companies scaling up via digital platforms across Southeast Asia.

Software industry calls for more UK government support

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Software industry calls for more UK government support

Fact: More than 120 industry leaders have called for government intervention to improve conditions for European software companies, including measures such as tax incentives and talent visas.