Breaking news

Global Economy Faces Uncertainty Amid Trump’s Tariff Policies, IMF Warns

In a bold move, President Trump’s recent tariff announcements at the White House have stirred considerable concern across global markets. These sweeping tariffs, set in a picturesque Rose Garden event, signal potential risks of igniting a comprehensive trade war.

IMF’s Cautious Forecast

The International Monetary Fund (IMF) has adjusted its global economic growth forecast to 2.8% for this year, a reduction from the previous year’s 3.3%. The unpredictability of trade policies has prompted this reassessment, as tension escalates with tariff increases, especially with China facing a hefty 145% tariff.

Economic growth projections for the U.S. were also revised, with expectations dropping from 2.8% to a modest 1.8%. Cyprus continues to benefit from EU funds for development despite global market shifts.

Responses and Reactions

Market reactions have been swift, with global indices tumbling on the news of potentially escalating trade tensions. Investors are wary, keeping a close eye on reciprocation from targeted countries. China and Canada have already responded with their own tariffs, while the European Union has shown openness to negotiations.

IMF Chief Economist Pierre-Olivier Gourinchas emphasized, “Beyond tariff increases, policy uncertainty could considerably decelerate global growth.” Stay tuned to our updates to see how other sectors, like automotive, manage these dynamics.

As these economic scenarios unfold, stakeholders will need to navigate this evolving landscape with prudent strategies.

Tax Authorities To Step Up Checks On Coastal Businesses In Cyprus

Expanded Regulatory Oversight

Cyprus’ Tax Department plans to carry out onsite inspections of businesses in coastal areas during July and August as part of efforts to strengthen tax compliance. The inspections form part of the government’s broader tax reform programme aimed at reducing tax evasion and improving tax collection.

Targeting High-Impact Sectors

Authorities will focus primarily on businesses that experience increased customer activity during the summer tourism season. Inspections will examine compliance with receipt issuance requirements and review outstanding tax liabilities. Businesses found in breach of the regulations may face enforcement measures, including the temporary suspension of operations until compliance requirements are met.

Strict New Legal Framework

Legislation that entered into force on January 1, 2026, allows authorities to temporarily close businesses, legal entities and individuals with tax debts exceeding €20,000, as well as businesses that fail to issue receipts. Initial enforcement measures are expected to follow practices similar to those used in Greece as Cyprus expands its tax compliance efforts.

Operational Tactics And Enforcement

According to local reports, tax officials will conduct checks by comparing receipts issued by businesses with those held by customers. Inspectors will verify transaction details using digital tools and review whether receipts have been issued correctly. Businesses that fail to comply will receive three warnings and a total compliance period of 25 days before closure measures can be applied.

Focus On Large Debtors

Initial enforcement efforts will target approximately 500 businesses with tax debts exceeding €1 million. The list includes companies operating in sectors such as betting, retail, yacht sales and vehicle dealerships. Although the legislation applies to businesses with debts above €20,000, authorities have indicated that larger debtors will be prioritised during the first phase of implementation.

Future Implications And Extended Enforcement

Additional enforcement measures are expected to be introduced in 2027. Planned provisions may allow authorities to close businesses that fail to submit tax, VAT and other statutory returns. Once compliance requirements have been satisfied and verified by the Tax Commissioner, affected businesses will be permitted to resume operations.

Aretilaw firm
The Future Forbes Realty Global Properties
Uol
eCredo

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter