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January 2025 Breaks Records As the Warmest On Record, Despite La Niña Transition

The year 2025 has started with a record-breaking January, marking the warmest January on record, continuing the trend of extreme global temperatures despite the shift to the cooler La Niña weather pattern.

Key Facts

  • January 2025 continued the pattern of unusually high global temperatures, with the average temperature being over 1.5°C higher than pre-industrial levels in 18 of the last 19 months, according to the EU’s Copernicus Climate Change Service (C3S).
  • The global temperature for January was 1.75°C higher than pre-industrial levels.
  • This warm streak continues even as the world shifts from the previous warming El Niño phase, which contributed to making 2024 the hottest year on record, to the cooling La Niña phase. La Niña is characterized by the cooling of equatorial Pacific waters, typically limiting the global temperature rise.

Important Quote

“The fact that we are still seeing record temperatures outside the influence of El Niño is a bit surprising,” said Samantha Burgess, strategy manager at the European Centre for Medium-Range Weather Forecasts.

Key Story

El Niño peaked more than a year ago, and Copernicus estimates that La Niña has not yet fully developed, placing the world in a neutral state between the two phases.

Despite La Niña’s cooling effect, Burgess notes that it might not be enough to temporarily curb global temperatures. Other factors contributing to the heat include extreme temperatures in other ocean basins and, most importantly, the ongoing greenhouse gas emissions, which are the primary driver of global warming.

“The biggest factor contributing to climate warming is the burning of fossil fuels,” says Burgess.

Scientists from Berkeley Earth have projected that 2025 is likely to be the third warmest year on record, following 2024 and 2023. Although La Niña may cause some cooling, uncertainty remains about how it will develop.

Globally, average sea surface temperatures for January 2025 were the second highest ever recorded for the month, only slightly surpassed by January 2024.

Strained Household Finances: Eurostat Data Reveals Persistent Payment Delays Across Europe and in Cyprus

Improved Financial Resilience Amid Ongoing Strains

Over the past decade, Cypriot households have significantly increased their ability to manage debts—not only bank loans but also rent and utility bills. However, recent Eurostat data indicates that Cyprus continues to lag behind the European average when it comes to covering financial obligations on time.

Household Coping Strategies and the Limits of Payment Flexibility

While many families are managing their fixed expenses with relative ease, one in three Cypriots struggles to cover unexpected costs. This delicate balancing act highlights how routine payments such as mortgage installments, rent, and utility bills are met, but precariously so, with little room for unplanned financial shocks.

Breaking Down Payment Delays Across the European Union

Eurostat reports that nearly 9.2% of the EU population experienced delays with their housing loans, rent, utility bills, or installment payments in 2024. The situation is more acute among vulnerable groups: 17.2% of individuals in single-parent households with dependent children and 16.6% in households with two adults managing three or more dependents faced payment delays. In every EU nation, single-parent households exhibited higher delay rates compared to the overall population.

Cyprus in the Crosshairs: High Rates of Financial Delays

Although Cyprus recorded a notable 19.1 percentage point improvement from 2015 to 2024 in delays related to mortgages, rent, and utility bills, the island nation still ranks among the top five countries with the highest delay rates. As of 2024, 12.5% of the Cypriot population had outstanding housing loans or rent and overdue utility bills. In contrast, Greece tops the list with 42.8%, followed by Bulgaria (18.7%), Romania (15.3%), Spain (14.2%), and other EU members. Notably, 19 out of 27 EU countries reported delay rates below 10%, with Czech Republic (3.4%) and Netherlands (3.9%) leading the pack.

Selective Improvements and Emerging Concerns

Between 2015 and 2024, the overall EU population saw a 2.6 percentage point decline in payment delays. Despite this, certain countries experienced increases: Luxembourg (+3.3 percentage points), Spain (+2.5 percentage points), and Germany (+2.0 percentage points) saw a rise in payment delays, reflecting underlying economic pressures that continue to challenge financial stability.

Economic Insecurity and the Unprepared for Emergencies

Another critical indicator explored by Eurostat is the prevalence of economic insecurity—the proportion of the population unable to handle unexpected financial expenses. In 2024, 30% of the EU population reported being unable to cover unforeseen costs, a modest improvement of 1.2 percentage points from 2023 and a significant 7.4 percentage point drop compared to a decade ago. In Cyprus, while 34.8% still report difficulty handling emergencies, this marks a drastic improvement from 2015, when the figure stood at 60.5%.

A Broader EU Perspective

Importantly, no EU country in 2024 had more than half of its population facing economic insecurity—a notable improvement from 2015, when over 50% of the population in nine countries reported such challenges. These figures underscore both progress and persistent vulnerabilities within European households, urging policymakers to consider targeted measures for enhancing financial resilience.

For further insights and detailed analysis, refer to the original reports on Philenews and Housing Loans.

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