Cyprus Business Now: weekly wrap-up

Here are the top business stories in Cyprus from the week starting January 15:

Contrary to expectations that accompanied the reduction in the consumption tax rates for motor fuels, fuel prices saw a marginal decrease over the past week.

Moreover, on Monday, the Cyprus Statistical Service (CSS) reported a notable upswing in the adoption of eco-friendly vehicles in Cyprus in 2023.

Additionally, according to the European Banking Authority (EBA) on Friday, banks in Cyprus and Hungary emerged as the most profitable for shareholders in the context of Eurozone banking risks.

Furthermore, during her recent trip to Japan, Deputy Shipping Minister Marina Hadjimanoli officially named two newly-built Japanese cargo ships flying the Cyprus flag – the Ammochostos and the Kerynia, as part of ongoing efforts to promote Cyprus shipping on the global stage.

Meanwhile, in Nicosia on Monday, Energy Minister George Papanastasiou emphasised the vital role of integrating renewable energy sources (RES) into conventional power generation to reduce energy costs.

Nevertheless, Finance Minister Makis Keravnos, expressing concerns about potential inflation, acknowledged the unpredictability of the situation in the Red Sea, where recent Houthi attacks prompted changes in maritime routes and a surge in freight rates.

Consequently, at a workshop titled “How do I measure and reduce the environmental footprint of my business,” Commissioner of the Environment Antonia Theodosiou stressed the critical need for businesses to align with the newly established framework of the European Green Deal.

Subsequently, according to a PwC survey, business chief executives are more optimistic about economic prospects in 2024 compared to the previous year, with plans to expand their workforce in the next 12 months.

Notably, Irina Karpova, the head of recruitment at a leading Fintech company in Limassol, highlighted the high priority businesses place on candidates with advanced soft skills, emphasizing the importance of alignment with company culture.

Additionally, a new government plan allows hotels and leisure centres that usually close during the off-season to stay open and provide training for their employees.

In light of this, a survey conducted by the Central Bank of Cyprus (CBC) revealed a decline in loan applications by both businesses and households in the third quarter of 2023, influenced by strict Eurozone policies and rising interest rates.

Remarkably, according to Eurostat, Cyprus ranks among the top European Union countries in car ownership, with 658 passenger cars per 1,000 inhabitants, representing a 19.85 per cent increase over the past decade.

Recently, on January 15, the Cyprus Aviation Association, operating under the Cyprus Chamber of Commerce (Keve), was officially launched to enhance collaboration and manage relationships with government bodies and private organisations.

Following this unveiling, Cyprus Airways presented its 2024 strategy targeting the Greek market during a presentation in Athens on Thursday, marking a new direction for the airline’s services to the Greek travelling public.

Lastly, in a meeting between Energy Minister Giorgos Papanastasiou and the president of the Cyprus Chamber of Commerce (Keve), Stavros Stavrou, alignment of strategies on energy, natural gas, renewable energy sources, and manufacturing was discussed, emphasising the importance of a strengthened relationship between the ministry and the chamber to support the Cyprus economy.