Labour costs and access to raw materials the main problems for Cyprus’ businesses in 2023, survey shows

High labour costs and unhindered access to energy and raw materials are the main challenges expected to be faced by Cypriot businesses in 2023, based on the 30th annual edition of the Eurochambers Εconomic Survey.

In a press release concerning the outcomes of the survey, the Cyprus Chamber of Commerce and Industry (Keve) points out that entrepreneurs’ resilience cannot be taken for granted and that Europe’s business community has suffered multiple blows over the last three years

“Our entrepreneurs continue to show impressive resilience in the face of unprecedentedly strong economic and geopolitical headwinds. But this resilience cannot be taken for granted and cannot go on indefinitely”, Keve said. This is underlined by the newly released 30th annual edition of the Eurochambres Economic Survey – based on responses from over 42,000 companies in 25 European countries.

Based on the research findings regarding Cyprus, 21 per cent of the participants said the main challenge that Cypriot businesses will face in 2023 is the high labour costs, while 19 per cent expressed their concern about the access to energy and raw materials.

About 18 per cent responded that businesses in 2023 will face problems with supply chains, 15 per cent are worried about shortages of skilled workers and 14 per cent of businesses are worried about possible new restrictions due to Covid-19.

Regarding domestic sales, 34.9 per cent of Cypriot businesses answered that they expect an increase, 20.8 per cent that there will be a decrease and 44.3 per cent said that sales will remain at the same levels.

In relation to exports, 40.7 per cent of Cypriot companies expect an increase, 23.7 per cent answered that there will be a decrease and 35.6 per cent that they will remain at the same levels.

The labour sector will not be significantly affected according to the respondents. A total of 32.3 per cent answered they expect an improvement in employment levels, 59.4 per cent said that it will remain at the same levels, while only 8.3 per cent answered that there will be a reduction.

Investments in 2023 are expected to remain at the same levels according to 56.1 per cent of the companies, while 28.3 per cent think that there will be an increase and 15.6 per cent that there will be a decrease.

Business confidence does not seem to be much affected, since 44.5 per cent of entrepreneurs say that there will be stagnation, 26.2 per cent that there will be an increase and 29.3 per cent that there will be a decline.

Keve noted the European Chambers urge EU and national policy-makers to be conscious of the plight of entrepreneurs and to recalibrate the legislative agenda to allow them sufficient breathing space to safeguard their future and drive Europe’s medium to long term sustainable growth.