Breaking news

Cyprus has the largest share of petrol use in EU

by THEFUTURE.TEAM

October 10, 2024

Petrol/diesel oil was the main energy source in road transport in the EU in 2022, while Cyprus had the largest share of use of motor petrol among member states, according to data released by Eurostat.

Petrol/ diesel oil and motor petrol remained the leading energy sources in road transport in 2022, according to the statistics.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

In the EU, petrol/diesel oil (excluding the biofuel portion) was the main source of energy in road transport in 2022, with a 65% share. Motor petrol (excluding the biofuel portion) followed at 25%, ahead of renewables and biofuels (6%), liquefied petroleum gases (2%), natural gas (1%) and electricity (0.3%).

In most EU countries, petrol/diesel oil was the primary source of energy for road transport, though there were noticeable differences between the countries.

The highest shares were reported in Latvia (80%) and Lithuania (76%), followed by Ireland, Austria, and Spain, each at 74%. In contrast, the lowest shares were recorded in Sweden (45%), Cyprus (46%) and the Netherlands (48%).

The share of motor petrol was highest in Cyprus (50%), the Netherlands (42%), and Malta (36%). The lowest shares were reported in Lithuania (13%), Latvia (14%) and Bulgaria (15%).

Energy consumption in transport at pre-pandemic levels

According to the statistics, in 2022 transport activities accounted for 31% of the final energy consumption in the EU, which made it the highest consumer of final energy, ahead of households (27%) and industry (25%).

Road transport was the largest energy consumer, responsible 74% of all energy consumption in transport, or 10,996 petajoules (PJ). Water transport accounted for 13% of all energy consumed in transport (1,935 PJ), followed by air (11%; 1,700 PJ) and rail transport (1%; 214 PJ).

Compared with 2021, air transport recorded the highest increase in energy consumption, with a striking 57% rise. In 2022, energy consumption levels in air transport were approaching the pre-pandemic figures, following sharp declines in 2020 and 2021.

Energy consumption also increased, if not as rapidly in road transport, which also approached 2019 levels.

The Future Forbes Realty Global Properties

Cyprus’ Economic Resilience Affirmed: Fitch Confirms ‘A-‘ Rating Amid Fiscal Strength

by THEFUTURE.TEAM

May 24, 2025

Strong Fiscal Fundamentals and Robust Economic Growth

The international credit ratings agency Fitch has affirmed Cyprus’ long-term rating at A- with a stable outlook. This decision reflects the nation’s strong public finances, a significant reduction in debt levels, and steady economic growth. Officials at the finance ministry welcomed the move, describing it as a robust vote of confidence in the government’s prudent economic policies.

Notable Budget Surpluses and Debt Reduction

Fitch highlights Cyprus’ high primary budget surplus, projected at 4.3% of GDP for 2024, alongside a dramatic drop in public debt from 73.6% of GDP in 2023 to 65.3% by year-end. The surplus soared to 5.6%, marking the highest level in nearly two decades, largely due to rising revenues and disciplined spending. The agency forecasts continuous improvement with debt falling further to 52.6% of GDP in 2026 and potentially nearing 45% by 2030, assuming current trends persist.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Economic Performance and Labor Market Strength

Cyprus’ economy is projected to grow at 3% for both 2025 and 2026, following a 3.4% expansion in 2024. A robust services sector and a healthy labor market are propelling this growth, with employment rising by 2% in 2024 and unemployment declining to 4.5%, close to record lows.

Market Vulnerabilities and External Challenges

Despite these positive developments, Fitch underscored persistent vulnerabilities, including a high current account deficit — estimated at around 7% of GDP over the coming years. This deficit, among the highest in the EU, is offset by sustained foreign direct investment (FDI) flowing into a diverse range of sectors. Additionally, while Cyprus’ banking system remains stable with a top-tier CET1 ratio of 24.5% and declining non-performing loans, long-term risks persist due to governance issues relative to other A-rated peers and exposure to regional geopolitical tensions.

Outlook and Policy Implications

Although Fitch’s model initially rated Cyprus at A, external risks necessitated a one-notch reduction. Future upgrades will hinge on continued debt reduction and narrowing the external deficit. Conversely, a downturn in public finances or a severe external shock could precipitate a downgrade. The finance ministry stated that the report is a testament to Cyprus’ steady economic trajectory, highlighting the ongoing commitment to responsible fiscal management as essential for bolstering both competitiveness and stability.

In conclusion, the agency’s assessment reinforces Cyprus’ sound economic fundamentals, while also flagging areas that require ongoing vigilance. As the government continues to implement strategic economic reforms, the outlook remains cautiously optimistic amid the broader global economic uncertainties.