In August 2024, Cyprus experienced an improvement in its economic sentiment, as reported by the University of Cyprus’ Economics Research Centre (CypERC). The Economic Sentiment Indicator (ESI) rose by 1.5 points compared to July, primarily due to stronger business confidence in the services, construction, and manufacturing sectors.
The services sector saw a boost in confidence, driven by improved expectations regarding turnover for both the past and upcoming quarters. Similarly, the construction sector enjoyed a second consecutive month of strengthened sentiment, supported by favorable assessments of ongoing projects and positive employment forecasts. In manufacturing, sentiment improved largely due to better production expectations for the coming quarter.
However, the retail trade sector faced a slight decline in confidence, attributed to a worsening current situation and lower sales projections for the next quarter. Businesses in this sector were less optimistic about future sales and supplier orders, contributing to the overall negative trend.
Meanwhile, consumer sentiment continued to decline, with deteriorations across all components, including assessments of households’ financial situations and future economic prospects. Consumers also became more pessimistic about future labor market conditions and price trends.
Despite the overall improvement in economic confidence, the CypERC noted that this was accompanied by increased uncertainty. Geopolitical tensions and disruptions to major investment projects in Cyprus have heightened concerns among businesses and households.
For those interested in exploring property opportunities in Paphos amidst these economic developments, a wide range of options can be found here. This resource offers valuable insights into the local real estate market, which remains a key area of interest for investors even during times of economic fluctuation.
source: cyprus-mail.com
