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Economic Sentiment In Cyprus Sees Modest Improvement In June

by THEFUTURE.TEAM

June 28, 2024

In June 2024, Cyprus experienced a slight improvement in economic sentiment, with the Economic Sentiment Indicator (ESI-CypERC) rising by 0.6 points compared to May. This uptick was largely driven by stronger consumer confidence and a minor boost in business confidence within the service sector.

According to the Economic Research Centre of the University of Cyprus, the Service Confidence Indicator improved due to better assessments of recent business performance and turnover. Conversely, the Retail Trade Confidence Indicator remained stable, with positive sales expectations balancing out poorer recent sales views.

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However, the Construction Confidence Indicator continued to decline for the second consecutive month, impacted by negative assessments of order book levels and reduced employment expectations. The Industry Confidence Indicator also saw a slight decrease, primarily due to less favourable views on current order book levels.

Notably, the Consumer Confidence Indicator rose again in June. Consumers showed a marked increase in their intention to make significant purchases in the coming months, alongside improved expectations regarding their financial situation and the general economic conditions in Cyprus.

Despite these positive trends, the report noted a rise in economic uncertainty, driven by the increased difficulty consumers and service firms faced in predicting their financial situations. Nonetheless, the level of economic uncertainty in June remained lower than that observed in the first four months of 2024.

These findings underscore the cautious optimism prevailing in Cyprus’s economic landscape, highlighting the nuanced challenges and opportunities faced by businesses and consumers alike. The slight increase in economic sentiment reflects a complex interplay of factors, pointing to a cautiously optimistic outlook for the near future.

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Industry Uproar Over Reduction in Electric Vehicle Subsidies

by News Editor

April 26, 2025

The recent move by the government to curtail subsidies for electric vehicles has stirred significant discontent among car importers in Cyprus. The Department of Road Transport (DRT) has slashed available grants under the Electric Vehicle Promotion Scheme as of April 23, leading to a rapid depletion of the subsidy pool and leaving many potential applicants disappointed.

Importers’ Concerns

According to the Cyprus Motor Vehicle Importers Association (CMVIA), the lack of transparency and failure to engage stakeholders prior to the decision have eroded trust in the government’s commitments. Importers now find themselves facing a precarious situation, with substantial stocks of electric vehicles and mounting promotional expenditures.

Public Interest and EU Compliance

Although the scheme aimed to support the transition to zero-emission transport until 2025, the DRT states that the curtailing of funds was necessary to comply with European funding terms, which warned against delays in vehicle deliveries. This decision has fueled market uncertainty despite the application portal experiencing dynamic changes.

Industry’s Ongoing Demand

The CMVIA refutes any claims suggesting waning interest in electric vehicles, underscoring the rapid exhaustion of available grants as proof of substantial demand. They highlight the importance of meeting Cyprus’s green transition targets, including putting 80,000 electric vehicles on roads by 2030.

While the total budget for subsidies saw an increase to €36.5 million in 2023, thanks to additional funding, ongoing difficulties in timely vehicle distribution have led to premature closures of applications. In response, CMVIA has called for urgent dialogue with the Minister of Transport to reassess the decision, fearing that it could endanger the future of e-mobility in Cyprus.