Cyprus: 60% of citizens believe their financial situation will worsen in next 12 months

Cyprus: 60% of citizens believe their financial situation will worsen in next 12 months

60% of Cypriot citizens believe that their financial situation will deteriorate in the next 12 months, according to a survey by the Bank of Cyprus. Albeit a high percentage, it has drastically shrank from the 89% recorded at the beginning of the year.

On the other hand, according to the Bank of Cyprus’ survey, 20% of Cypriots believe the economic situation will improve in the next 12 months. The percentage is low, yet continues its upward tendency compared to the 2% recorded at the beginning of the year. According to a previous survey by the bank, 67% of the population expected a deterioration, down 7%, while last winter the figure was 77%.

In terms of household income, almost half (47%) say they have not been substantially affected by the pandemic. According to the Bank of Cyprus, the percentage is considered very high under the conditions, but is in line with the 2020 GDP reduction, which was one of the lowest in Europe. “The economy is presumably resilient, given the range of pressures.

The encouragement of spending on permanent and semi-permanent goods by the moratorium on installments seems to have contributed substantially, while at the same time large categories of consumers have not been affected (civil servants, software companies, bank employees, etc.). The percentage of unaffected citizens has surged by 5 basis points compared to the beginning of the year. On the other hand, the households that state that they have been affected “a lot”, have been reduced from 31% to 26%,” the Bank reports.

According to the survey presented by the Bank in February, there is a slight gradual improvement and the trend does not seem to be reversed by the new measures taken by the government. In almost all the surveys presented by the Bank of Cyprus, there does not seem to be a general weakness in households to repay the installments. Additionally, in each survey that is presented, the percentage of households that are resilient and have not been affected by the intensifying pressures on the economy is increasing. From 42% in January, the rate is now up to 47%. /ibna