Sapienta Cyprus Teaser, 21 Dec 2022
Shorter Executive Summary of the latest Sapienta Country Analysis Cyprus
Welcome to Sapienta Cyprus Teaser, a subcategory of Sapienta Cyprus Snippets. Below is the shortened executive summary from my monthly Sapienta Country Analysis Cyprus: unrivalled independent analysis on all things Cyprus. Learn more about other features of Sapienta Cyprus Snippets here.
POLITICAL ANALYSIS AND OUTLOOK. Energy may be the first foreign policy issue for a Nicos Christodoulides presidency to tackle as the presidential election in February.
SECTORAL POLICIES, REFORMS AND ENERGY. Electricity problems are improving the prospects of Energean’s proposal to pipe gas to Cyprus, while ENI could move fast to export gas from Cyprus.
FISCAL PERFORMANCE AND FORECAST. The budget surplus in 2022 continues to expand. Public debt remains on a downward trajectory.
BANKING SECTOR. Belarusian interests in Hellenic Bank have shrunk to 7.2%. Hellenic Bank’s unadjusted NPE ratio rose slightly in the third quarter.
MACROECONOMIC TRENDS AND FORECAST. Real GDP growth slowed in the third quarter. We expect real GDP growth of 3.5% in 2023 as private consumption remains fairly robust.
ECONOMY OF NORTHERN CYPRUS*. Non-performing loans (NPLs) have started to rise. Hard-currency deposits have risen. Inflation is easing.
*Areas not under the effective control of the government of the Republic of Cyprus.