Cyprus economy 2024: Ktrends reveals challenges and successes

Delving into the latest findings from the 6th wave of ''Ktrends'' research by ''Kathimerini'' newspaper unveils a multifaceted picture of Cyprus's economic landscape in January 2024. Despite grappling with challenges like soaring inflation, the energy crisis, and mounting interest rates, Cypriot citizens have keenly felt the repercussions. Yet, amidst these trials, the Cypriot economy stands resilient.

According to an article by Panayiotis Rougalas, published in Kathimerini's Wednesday's edition, a thorough examination of the 6th wave's findings reveals intriguing dynamics. Cypriots persist in their spending habits, while banks face persistent trust issues, and the government, led by Nikos Christodoulides, receives a mixed bag of negative evaluations. Nevertheless, a sense of guarded optimism pervades the business sphere.

Zooming in on borrower dynamics, the data illuminates the challenges facing two out of five individuals in meeting loan obligations.

Looking ahead to the next quarter, while the economic outlook mirrors previous trends, a cautious hopefulness permeates sentiments. The government's approval ratings depict a gradual decline in momentum, with perceptions largely divided across gender and age demographics.

Despite economic headwinds, the vast majority manage to fulfill loan obligations, buoyed by a sense of cautious optimism about future payments. Household conservation measures, such as limited electricity consumption and reduced travel, reflect a concerted effort to navigate financial challenges.

Furthermore, consumer intentions for the upcoming quarter reveal a spectrum of aspirations, spanning from automotive purchases to investments in primary residences and land.

Conducted in collaboration with PwC Cyprus and supported by PwC, this research aims to unravel perceptions and expectations surrounding the Cypriot economy among a diverse sample of 800 individuals aged 18 and above.