• According to Cystat,
unemployment rate in
May 2012 has increased for the tenth consecutive moth since July 2011. Based on
the seasonally adjusted data that shows the trend of unemployment, the number of
registered unemployed for May 2012 increased to 36.313 persons in comparison to
35.402 persons in the previous month. The highest numbers recorded in the
sectors of construction, trade, manufacturing, public administration,
accommodation and food service activities.
• Inflation hit a seven month low in May in contrast to the increasing
construction cost of buildings. According to Cystat May 2012
inflation rate fell to 2.95% from 3.08% in April 2012 and 3.88% in May 2011.
The sectors of housing, water supply, electricity and liquid gas rose by 14.04%
compared to 13.68 in April. The sector of transportation surged 3.28%, while
that of education and hotel-restaurants rose 3.05% and 1.38% respectively.
According to Central Bank of Cyprus
Total Deposits on non Monetary and Financial Institutions held with the
Monetary and Financial Institutions in April 2012 faced a rise to
€ 71.601 mil.
mil. in relation to previous month. This increase was a result of the savings by
residents coming from Europe and rest of the world countries residents.
New reports by the Ministry of Finance have showed that the tax amnesty has
helped a lot the flow of income for the Government and thus the public debt has
been reduced for the fist four months of 2012. Specifically, the debt until the
end of April 2012 was reduced to €241.9mil
which reflects to 1.3% of the GDP. Last year's debt was
which reflects to 2.13% of the GDP. The direct taxes figure was improved due to
the increase of €
98.5mil or 18.2% which was achieved by the
inflow of tax amnesty.
Cyprus Property Market
• According to
Price Index the prices have continued to be reduced in the first Quarter of
2012. Limassol has been affected the most due to the low demand terms by the
foreigners. The report states that for houses and residential flats, there was a
reduction in prices in terms of 2.4% and 2.6% respectively. Furthermore the
prices of commercial shops has been reduced in terms of 3%, for office spaces
3.1% and for industrial warehouses 2.1%. The average price of rent in all
over Cyprus has been reduced by 2.2% for residential flats and houses, about
1.8% for shops, for industrial units 2.8% and about 4.3% for office spaces.
• Land Registry reports have showed that
property sales were increased in May 2012. They have accepted the largest number
of deeds of sale since June 2010. According to new Land Registry data the deeds
of sale were increased by 23% to 854 plots, from 697 in the corresponding month
of 2011. The deeds of sales by foreigners rose 18.7% to 222 from 187 in May
2011. Domestic demand rose by 23.9% to 632 from 510 in May 2011.
Sales (January - May)
Locals and Foreigners
|Source: Land Registry
Global Property Market & Economy
• The Euro Area
annual Inflation rate was
2.4% in May 2012, down from 2.6% in April 2012. The inflation rate in May
2011 was 2.7% while monthly inflation in April 2012 was 0.0%. The lowest annual
interest rates were recorded in Greece and Sweden (both 0.9%), Bulgaria(1.8%). The highest annual rates were recorded in Hungary (5.4%) and
Estonia (4.1%). The sectors and components with the highest annual rates were
alcohol and tobacco (4.7%), housing (4.0%), transport (3.7%), while the lowest
components were the communications (-3.7%) and education (0.7%).
• As Eurostat has published, the
hourly labour costs in the
(EA17) rose by 2.0%
in the year up to the first quarter of 2012, compared with 2.8% for the previous
In the EU27,
the annual rise was 1.7% up to the first quarter of 2012, compared with 2.7% for
the previous quarter.
The two main components of labour costs are wages & salaries and non-wage costs.
In the euro
area, wages &
salaries per hour worked grew by 2.0% in the year up to the first quarter of
2012, as did the non-wage component, compared with 2.6% and 3.5% respectively
for the fourth quarter of 2011. In the
hourly wages & salaries rose by 1.7% and the non-wage component by 2.1% in the
year up to the first quarter of 2012, compared with 2.6% and 3.4% respectively
for the fourth quarter of 2011.
• According to
Bloomberg, UK Home Sellers push asking prices to record. As they stated,
asking prices for U.K. homes rose to a record in June, bolstered by London and
southeast England. The average asking price in England and Wales rose 1 percent
from May to 246,235 pounds. Prices in London jumped 1.7 percent to a record
477,440 GB Pounds. Further gains in values may be limited as the worsening debt
turmoil in the euro area undermines consumer confidence and pushes up bank
funding costs. Bank of England Governor Mervyn King said last week the crisis is
casting a “long shadow” over Britain’s recovery as he announced measures to
boost bank liquidity and try to lower borrowing costs
Bloomberg stated this month, China`s Home prices fall in more than half
Cities tracked. China’s home values fell in a record 54 of 70 cities
tracked by the government in May as developers cut prices to boost sales amid
housing curbs. “China’s property market is approaching gently the bottom of its
decline path and I expect we’ll see a touchdown sometime over the next three to
four months,” Peter Churchouse, managing director of Portwood Capital, a Hong
Kong-based property investment firm, said in a Bloomberg Television interview.
“They’ve definitely succeeded in slowing the market down. They’ve engineered it
pretty nicely so far.”
Rate, April 2012, %
||8.4 (March 2012)
Sales to foreigners
||Jan - May 2012
Jan - May 2011
|Source: Land Registry