Economy

Opposition slams president, ’s lack of vision

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Opposition slams president, ’s lack of vision

– President Nikos Christodoulides presented government goals for 2024, outlining a series of 80 points for action.
– Opposition party Akel criticized the government for not achieving previously set high standards and for not presenting anything new beyond the election campaign promises.
– Disy, another opposition party, labeled the president a “copycat” for repeating statements made by ministers during budget presentations and expressed skepticism about the creation of a new vision.
– Disy was pleased with the partial acceptance of their proposal to extend maternity leave to 22 weeks from the first child.
– Disy has submitted recommendations for the budget review, including further support for families with three or more children, and has tabled legislative proposals for voting rights at 17 since June 1, 2023.
– Finance Minister Makis Keravnos stated that his ministry is prepared to meet the goals set by Christodoulides for 2024 and emphasized the importance of moving forward with goals for the benefit of Cyprus.
– The 2024 budget includes a significant primary surplus to support the president’s goals and the country’s obligations as a European nation.

Opposition slams president, ’s lack of vision

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Opposition slams president, ’s lack of vision

– President Nikos Christodoulides presented government goals for 2024, outlining a series of 80 points for action.
– Opposition parties responded critically to the presentation, with Akel suggesting the government has previously failed to meet its own standards and Disy accusing the president of repeating previously stated plans.
– Disy noted that the budget passed reflects the actions to be taken in 2024 and includes development projects and implementation of previously voted reforms.
– Disy was partially satisfied with the extension of maternity leave to 22 weeks from the first child, a proposal they supported.
– Disy has also proposed legislative changes to allow voting rights at 17, with proposals tabled since June 1, 2023.
– Finance Minister Makis Keravnos stated that the ministry is prepared to meet the goals set for 2024 and emphasized the importance of moving forward with goals for the benefit of Cyprus.
– The 2024 budget includes a significant primary surplus to support the announced goals and respond to the needs of the Cypriot people within the context of a modern, evolving European country.

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.

Support for Germany’s far-right AfD reaches six-month low after protests

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Support for the Alternative for Germany (AfD) dropped below 20% for the first time since July, according to a poll. The drop in support comes after nationwide protests against the far-right party over the past three weeks. The AfD dropped one percentage point to 19% in the poll, remaining in second place behind the main opposition conservatives. The protests against the AfD gained momentum after news reports that two senior party members had discussed plans for mass deportation of citizens of foreign origin. German companies and their CEOs have also warned about the threat of right-wing extremism to the country’s economy. The popularity of the AfD is seen as damaging Germany’s reputation as an export nation. The AfD had previously placed first in recent polls in three eastern German states holding elections this year.

Opinion: The impact of disrupted routes through the Red Sea on international trade

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Fact: Attacks by Yemeni Houthi fighters on cargo ships in the Red Sea could disrupt maritime routes and have far-reaching consequences on global commerce, affecting economies, supply chains, and geopolitical dynamics.

The prospects of the Greek economy in 2024

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The prospects of the Greek economy in 2024

The Greek economy continues to show positive performance despite global economic slowdown due to currency tightening, energy crisis, and conflicts in Ukraine and the Middle East. The International Monetary Fund (IMF), the European Commission, and the Organization for Economic Cooperation and Development (OECD) predict a growth rate of 2.0%-2.3% for 2024, slightly lower than 2023 but higher than the eurozone average. The positive performance is attributed to cheap financing from the Recovery and Resilience Fund, strong tourism, and ongoing reforms. The main challenges for the Greek economy include the investment gap, high public debt and non-performing loans, and high current account deficit. Reducing the debt will be difficult in the coming years due to various factors such as the need for primary surpluses, higher interest rates, and the expiration of certain financial support. The government's reform efforts have been praised, but further reforms are needed to attract investments and improve infrastructure. The article emphasizes the importance of balancing fiscal space for social benefits with the need to reduce debt.

Investors reassess strategies amid Middle East tensions

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Investors reassess strategies amid Middle East tensions

The recent surge in tensions in the Middle East, caused by attacks carried out by Iran-backed militants, is leading investors to reassess their strategies. The attacks have increased uncertainty and market volatility, prompting investors to adopt a more cautious approach and impacting various asset classes. The Middle East is a significant player in the energy market, and disturbances in the region can have a profound impact on energy prices. Rising oil prices could have cascading effects on markets, including increased production costs, higher transportation expenses, and a potential drag on consumer spending. Investors in energy-related stocks and commodities may experience increased levels of volatility. If the events in the Middle East continue to escalate, there may be a flight to safety, with investors reallocating their portfolios to mitigate risks. This could lead to increased demand for safe-haven assets such as government bonds and certain currencies like the US dollar. Diversification strategies become even more critical during periods of heightened geopolitical tension. Investors will also be monitoring the impact on trade and supply chains, as rising tensions can lead to increased shipping costs, delays, and potential disruptions in the flow of goods. Companies operating in or dependent on the affected regions may face challenges, while those with diversified supply chains may be better positioned to navigate uncertainties. The recent attacks in the Middle East are injecting a new level of uncertainty into financial markets, and investors are actively managing the potential ramifications of escalating tensions.

Investors eye , ‘critical season’ for Big Tech earnings

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Investors eye , ‘critical season’ for Big Tech earnings

Five Big Tech companies with a combined market value of over trillion will report earnings this week. Investors are interested in the potential benefits of artificial intelligence (AI) technologies from Microsoft, Google-parent Alphabet, Meta Platforms (formerly Facebook), Amazon, and Apple. These companies have been driving the S&P 500 index’s record gains in 2023. The CEO of deVere Group describes this earnings season as “critical” for Big Tech due to its influence on the broader market and the technology sector’s role in economic growth. Investors are also looking for updates on AI innovation, consumer behavior, and e-commerce trends. The performance of these tech giants will have significant implications for market and economic sentiment.

Champion of development is the field of Information Technology – Communication

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Champion of development is the field of Information Technology - Communication

The ICT sector in Cyprus has been the fastest-growing sector in the last decade, with an average growth rate of 15%. It is now in third place in terms of gross value added, contributing 9.6% to the country's GDP in 2022. The sector's total contribution to the economy in 2022 was €2.33 billion, showing a 277% increase in a decade. The success of Cyprus in attracting multinational technology companies is attributed to the government's attractive incentives package and the efficient business facilitation unit. The sector's momentum is expected to continue due to investments in digitalization and the European Union's focus on digital transformation. However, a challenge for the sector is the lack of local talent with the necessary skills, which requires efforts in upskilling and promoting digital education. The top five sectors contributing to Cyprus' GDP are Wholesale and Retail Trade, Financial and Insurance Activities, ICT, Real Estate Management, and Professional, Scientific, and Technical Activities.

Government needs a new economic agenda

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Government needs a new economic agenda

The trade unions and the Minister of Finance in Cyprus are in disagreement over the automatic wage indexation policy. The government had previously agreed to adjust salaries and pensions of public employees at a cost of 1.2 billion euros, but now the finance ministry is reconsidering this decision due to warnings from the European Commission, the IMF, and the country’s Fiscal Council about the risks to fiscal stability. The unions are trying to reverse reforms that were made as part of the country’s rescue package by the EU, IMF, and ECB. The author suggests that the government should implement policy measures to address fiscal risks and drive growth and competitiveness, such as incentivizing employees to work past retirement age and creating a sovereign fund. Additionally, the author recommends addressing the demographic risk by providing affordable housing to new couples with EU citizenship. It is unclear if the president has the vision and priorities to implement these policies.