Businesses in Limassol report little change compared to a year ago, according to the autumn 2024 business barometer.

While optimism has improved slightly, labour shortages, rising costs, and Environmental, Social, and Governance (ESG) compliance remain key challenges.

The latest edition of the barometer, compiled by the Limassol Chamber of Commerce and Industry (Evel) for the 15th year running, outlines key trends in the economy and issues concerning local enterprises.

The report offers insights into the evolving ratio of optimism to pessimism, as well as hiring and investment dynamics.

According to the findings, “the ratio of optimism to pessimism has improved compared to last year, while marginal progress is noted in hiring intentions and satisfaction with investments.”  

However, persistent challenges remain, with labour shortages continuing to top the list of problems.  

Additionally, “government departments are not seen as particularly business-friendly,” the report notes.  

In terms of risks, the barometer underlines that “the only really material concern is rising costs, while other risks are apparently seen as more manageable.”  

Exogenous factors, such as geopolitical crises in Ukraine and the Middle East, alongside rising commodity prices, are cited as having the most significant impact on the Cypriot economy, according to the Evel. 

The report also points to a lack of awareness and action among businesses regarding ESG obligations.  

“It is observed that companies are facing a lack of knowledge and actions on ESG obligations, a situation that could end up having serious costs for those considered non-compliant,” the chamber warns.  

To address this, it plans to develop training programmes to support businesses in aligning with ESG standards. 

In addition, the barometer reveals that “the assessment of existing systems and facilities related to the circular economy is deteriorating.”  

Nevertheless, it adds that “questions about sustainable mobility solutions have yielded positive answers.”