The negative trends in Cyprus’ unemployment and inflation numbers are turning around, according to official statistics.
Unemployment fell by 7.9 percent to 42.326 persons in February 2017 compared to the same period a year ago, said the Cyprus Statistical Service (CySTAT). Inflation is on the rise, with prices switching from deflation to growth of 1.7 percent versus February 2016. Prices grew by 1.1 percent between January and February 2017, driven mainly by rises in electricity prices.
When inflation is at healthy levels capped at two percent it means that prices are rising along with company profits. When companies make more profit, they can afford to hire more personnel and grow. This means a stronger economy, more jobs and less financial insecurity.
While there are still weak spots in the economy such as the high household debt and cash-flow crunch, the fundamental trends are flowing in the right direction.