Investor Presentaiton
Moderate inflation and rapid reduction in unemployment
Low inflationary pressures
Subdued inflationary pressures despite growth owing
to exogenous factors. CPI inflation at 0,4% in the first
eights months 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 6,8% in
August 2019 compared to 8,3 % in August 2018.
• Flexibility of labour market and strong economic
activity contributing to normalization of labour
conditions.
• Encouraging signs of de-escalation in youth
unemployment while long-term unemployment is
correcting faster than total.
Source: Cyprus Statistical Service, Eurostat
Annual % change
4,0
3,0
2,0
1,0
0,0
-1,0
-2,0
-3,0
18
16
14
12
10
8
6
%
Jan-14
Jun-14
Nov-14
Apr-15
Sep-15
Jan-14
Jul-14
Jan-15
Jul-15
Jan-16
Jul-16
Seasonally adjusted unemployment rate
Jan-17
Jul-17
Jan-18
8
Jul-18
Jan-19
Jul-19
Feb-16
Jul-16
Dec-16
May-17
Oct-17
Mar-18
Aug-18
Jan-19
Jun-19
Inflation (CPI)View entire presentation