ECONOMY: Cyprus businesses optimistic over 2019 prospects

Cypriot firms are moderately optimistic about their business prospects over the coming year, according to the Pan-European Economic Survey of European Chambers of Commerce.

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The survey involved over 45,000 businesses in 26 EU countries.

Findings for the survey in Cyprus, conducted by the Cyprus Chamber of Commerce and Industry (CCCI) showed increased but moderate optimism for 2019 confirming the continued recovery of the Cypriot economy.

It is noted that the findings for Cyprus are broadly in line with the findings of all the European countries that participated in the survey.

The main challenges that Cypriot businesses expect to face in 2019 is domestic as well as external demand, while other challenges mentioned relate to the price of energy and raw materials, labour costs, access to finance, the lack of a skilled workforce, Brexit and exchange rates.

At the pan-European level the main challenges expected are labour costs and the lack of a skilled workforce.

According to the survey, 57% of Cypriot businesses believe they will have increased domestic sales in 2019 (4th best projection at a European level).

And 43% of Cypriot businesses believe they will have increased exports in 2019 (13th best projection), while 36% expect to have increased staff needs in 2019 (12th place).

Some 52% of Cypriot businesses believe they will be making increased investments in 2019 (5th best projection), while 54% are more optimistic about 2019 (the 9th best projection).

Based on the survey’s findings CCCI stresses that structural changes and reforms should continue in 2019 in order to further strengthen the Cypriot economy and modernise the country's growth model.