Despite highs, economic uncertainty declines slightly
The level of economic uncertainty in Cyprus, as measured by the Economic Policy Uncertainty (EPU) index, fluctuated from December 2023 to February 2024. It increased in January 2024 to 279.76, attributed to geopolitical turmoil, including the crisis in the Middle East and the Red Sea, before dropping to 221.14 in February. This pattern of fluctuation was also observed in the European EPU index. The University of Cyprus noted that economic uncertainty in Cyprus has been historically high, with significant peaks in 2012 due to the banking crisis, in 2020 due to the Covid-19 pandemic, and in 2022 due to the Russia-Ukraine war.