Investor Presentaiton
Moderate inflation and rapid reduction in unemployment
Low inflationary pressures
Subdued inflationary pressures despite growth owing
to exogenous factors. CPI inflation at 1% in the first
half of 2019 with core inflation excluding energy and
seasonal food at 0,3%. Respective figures in 2018
were 1,4% and 0,4%.
• Fast correction during crisis years reflecting the wage
flexibility of the labour market which led to an
internal devaluation and improvement in price
competitiveness.
Rapid decline in unemployment
• Labour Force Survey unemployment in monthly
seasonally adjusted terms decreased to 6,5% in May
2019 compared to 8,3 % in May 2018.
Flexibility of labour market and strong economic
activity contributing to normalization
conditions.
6,0
5,0
4,0
3,0
2,0
1,0
0,0
-1,0
-2,0
-3,0
%
18
16
14
12
8
of labour
10
youth
Encouraging signs of de-escalation in
unemployment while long-term unemployment is
correcting faster than total.
6
Source: Cyprus Statistical Service, Eurostat
Jan-11
Jan-11
Annual % change
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Seasonally adjusted unemployment rate
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Jan-16
Jul-16
Jan-17
Jul-17
Jan-18
Jul-18
Jan-19
8
Jan-15
Jul-15
Inflation (CPI)
Jan-16
Jul-16
Jan-17
Jul-17
Jan-18
Jul-18
Jan-19View entire presentation