Cyprus Business Now

The Economic Policy Uncertainty (EPU) Index in Cyprus has returned to more normal levels in spring 2023, indicating a significant decline in uncertainty one year after the start of the Russia-Ukraine war, according to the Centre for Economic Research (CER) at the University of Cyprus.

The EPU Index, compiled by the centre in collaboration with the Finance Ministry, recorded values of 236.62, 263.95, and 254.95 for the months of March, April, and May, respectively.

Despite a temporary increase in the Economic Policy Uncertainty Index in April, the following month saw a decline.

According to the research centre, this increase appears to be partly due to the banking crisis in the United States that began in March, following the collapse of Silicon Valley Bank in the same year.

Similar temporary increases in the EPU Index have been observed in most European countries, including France, Germany, and Spain, among others, with the majority experiencing the rise in March.

According to data released by the Cyprus Statistical Service this week, the Industrial Production Index showed a marginal increase of 0.2 per cent in April 2023, reaching 127.2 units (base year 2015=100) compared to April 2022.

The manufacturing sector experienced growth of 1.4 per cent compared to April 2022, while negative changes were observed in the sectors of electricity supply (-5.4 per cent), water supply and waste management (-2.7 per cent), and mining and quarrying (-0.6 per cent).

Within the manufacturing sector, the most significant positive changes were observed in the production of textiles, clothing, and leather goods, which increased by 12.9 per cent.

Additionally, there was an increase of 12 per cent in the production of basic metals and the manufacture of metal products, as well as a 5.4 per cent rise in the production of machinery, motor vehicles, and other transport equipment.

On the other hand, negative changes were recorded in the activities of furniture manufacturing and machinery repair and installation, which decreased by 3.6 per cent, and in the food, beverage, and tobacco industry, which experienced a decline of 1.8 per cent.

During the period from January to April 2023, the Industrial Production Index showed a decrease of 0.2 per cent compared to the same period of the previous year.

Noteworthy increases were observed in the production of textiles, clothing, and leather goods, with an 18 per cent rise, material recovery with a growth of 10.8 per cent, mining and quarrying with a surge of 9.1 per cent, production of basic metals and the manufacture of metal products with an increase of 8.4 per cent, and the production of non-metallic mineral products with a rise of 7.6 per cent.

The activities that experienced the most significant declines in production compared to the period of January to April 2022 were electricity supply, which witnessed a decrease of 14.1 per cent, water collection, treatment, and supply, which decreased by 10.1 per cent, and furniture manufacturing and machinery repair and installation, which dropped by 5.2 per cent.

The Cyprus Stock Exchange (CSE) ended Friday, June 30 with profits.

The general Cyprus Stock Market Index was at 117.59 points at 13:27 during the day, reflecting an increase of 0.14 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 71.11 points, representing a rise of 0.15 per cent.

The total value of transactions came up to €107,549.

In terms of the sub-indexes, the main and investment firm indexes rose by 0.17 per cent and 0.9 per cent respectively.

The alternative and hotel indexes remained unchanged from the previous day of trading.

The biggest investment interest was attracted by the Bank of Cyprus (+0.68 per cent), Demetra (+0.94 per cent), the Cyprus Cement Company (no change), Atlantic Insurance (no change), and Petrolina Holdings (no change).