Sapienta Cyprus Selection, 21 Dec 2022
Regular Cyprus-relevant links
A regular selection of links to articles of medium- to long-term relevance to people living and doing business in Cyprus. Topics marked with * will be or already have been analyzed in our monthly issues of Sapienta Country Analysis Cyprus. Learn more about the different subsections of Sapienta Cyprus Snippets here.
Cyprus gas*. It is 11 years since natural gas was first discovered and to date nothing has been extracted. But things are beginning to change. AP article via Yahoo: https://news.yahoo.com/cyprus-plant-process-israeli-gas-202114385.html. Relevance to Cyprus: we unpack what is going on behind the scenes in natural gas every month in our Sapienta Country Analysis report. Our December issue will be no exception.
Economy*. The finance minister, Constantinos Petrides, has said that the Cyprus economy will not enter recession in 2023. We agree. Article from Kathimerini: https://knews.kathimerini.com.cy/en/news/finance-ministry-cyprus-economy-will-not-enter-a-recession. Relevance to Cyprus: most EU countries are expecting a mild recession in 2023 but while growth is slowing in Cyprus, there is still plenty of dynamism in the economy.
Electricity*. Rickety infrastructure is an even bigger issue in the northern part of the island, which saw power cuts for maintenance purposes on Tuesday. Article by LGC News: https://lgcnews.com/widespread-power-cuts-in-kyrenia-today/. Relevance to Cyprus: the European Commission and UN are working on joint solar-powered electricity production in the buffer zone. Infrastructure problems mean both sides have strong incentives to diversify energy sources and improve infrastructure.
UK property. RightMove is forecasting a 2% drop in UK property prices in 2022. Press release from RightMove: https://www.rightmove.co.uk/news/house-price-index/. Meanwhile, the UK government is supporting first-time buyers. Article from Reuters: https://www.reuters.com/world/uk/uk-extends-support-high-loan-to-value-mortgages-2022-12-19/. Relevance to Cyprus: will affect anyone with property in the UK and potentially will affect rental prices for Cypriots at UK universities.
Sapienta analysis. Our flagship Sapienta Country Analysis Cyprus report turned 10 years old on 19 December. The report has grown over the past decade from three sections to six, each section giving you very in-depth analysis of politics including the Cyprus problem; natural gas and structural reforms; fiscal stability and a medium-term forecast; banking-sector stability; macroeconomic trends and a medium-term forecast; and the economy of northern Cyprus. There is really nothing like it in the market, which is why clients include some of the biggest companies, institutions and countries in the world, as well as local big-name businesses. Relevance to Cyprus: with an unrivalled guide to which way the economy or government policy is likely to be heading, businesses and banks can plan for the changes well ahead of their competitors.