Cyprus Business Now

According to data published on Friday by Eurostat, Cyprus experienced a 14 per cent decrease in potato prices in 2023. Similar trends were observed in Belgium (18 per cent decrease) and Austria (4 per cent decrease). Conversely, other European Union member states saw a rise in prices, with Germany leading at a 49 per cent increase, followed by Slovakia (48 per cent) and Croatia (44 per cent).

The European Statistical Service estimates a general increase in the prices of agricultural products in the EU compared to 2021 and 2022. The average price of agricultural products rose by 2 per cent, while the average price of agricultural products and consumer services decreased by 5 per cent. Notable increases were seen in potato seeds (23 per cent), pigs (22 per cent), and eggs (20 per cent). Conversely, cereal products like wheat, barley, corn, rye, and oats experienced a decrease in prices.

Focusing on fertilizer prices, Cyprus recorded the highest increase at 14 per cent, with additional increases in Malta (9 per cent), Greece (6 per cent), and Romania (3 per cent). In contrast, Luxembourg (46 per cent), Sweden (41 per cent), and Finland (39 per cent) witnessed a decline in fertilizer prices. Overall, the average price for fertilizers and soil conditioners dropped by 23 per cent in the EU, while energy fuels decreased by 12 per cent. However, there was a 9 per cent increase in the average price of plant protection products and pesticides.

According to the results of the European Central Bank’s (ECB) consumer expectations survey, in the Eurozone, the expectations for an increase in minor income over the next 12 months are modest at 1.2 per cent, slightly up from October’s 1.1 per cent. This increase is primarily driven by those aged 35-54, while younger consumers (18-34) remain stable, and older consumers (55-70) exhibit a slight decline.

Nominal spending witnessed a consistent 6.3 per cent growth over the last 12 months. However, expectations for spending growth in the next 12 months have decreased to 3.2 per cent, down from 3.3 per cent in October and 3.4 per cent in September. This decline is noticeable across different income levels and age groups.

Home value expectations for the next 12 months increased slightly to 2.1 per cent, compared to October’s 2.0 per cent. Notably, lower-income groups consistently anticipated higher house price growth, with the lowest-income strata expecting 1.2 percentage points more than the highest-income bracket.

Over the past 12 months, mortgage rates have slightly decreased from 5.4 per cent in October to 5.3 per cent. While this is positive news for potential homebuyers, lower-income households are concerned about the possibility of rates increasing.

Although there has been a slight improvement in the perceived ease of accessing credit compared to its peak in October, many anticipate that it will become more challenging to secure credit in the next 12 months.

Economic growth expectations for the next 12 months improved marginally to -1.2 per cent, compared to -1.3 per cent in October. Expectations for the unemployment rate decreased to 11.1 per cent from 11.4 per cent in October. Consumers generally foresee a stable labour market, with future unemployment rates only slightly higher than the estimated current rate of 10.7 per cent. Notably, the lowest income quintile consistently reports the highest expected and estimated unemployment rates.

The Cyprus Stock Exchange (CSE) registered new gains during the last trading session of the week, after yesterday’s upward closing.

The General Index of the CSE closed at 136.01 points and +0.19 per cent.

The FTSE/CySE 20 Index closed at 82.51 points with gains of 0.18 per cent.

The Hellenic Bank share closed at €2.25 with an increase of 0.45 per cent and the Bank of Cyprus share closed at €3.39, unchanged. The value of the transactions amounted to €54.2 thousand.