In the first quarter of 2023, provisional data released by the Statistical Service indicated an average gross monthly earnings increase of 7.2% for employees compared to the same quarter in 2022. The average gross monthly earnings during Q1 2023 were €2,217, while in Q1 2022, they stood at €2,068.

When seasonally adjusted, the estimated average gross monthly earnings for Q1 2023 reached €2,289, reflecting a 2.5% increase compared to Q4 2022. Male employees earned an average gross monthly income of €2,376, while female employees earned €2,016 during Q1 2023. This represented a 7.3% increase for male employees and a 6.7% increase for female employees compared to Q1 2022.

Meanwhile, in April 2023, the Industrial Production Index experienced a marginal increase of 0.2% compared to April 2022, reaching 127.2 units (base 2015=100), as reported by the Statistical Service. The manufacturing sector showed positive growth of 1.4% while sectors such as electricity supply (-5.4%), water supply and materials recovery (-2.7%), and mining and quarrying (-0.6%) experienced declines.

Within the manufacturing sector, notable increases were seen in the production of textiles, wearing apparel, and leather products (12.9%), basic metals and fabricated metal products (12%), and machinery and equipment, motor vehicles, and other transport equipment (5.4%). Conversely, decreases were observed in the manufacturing of furniture and repair/installation of machinery and equipment (-3.6%) and the manufacture of food products, beverages, and tobacco products (-1.8%).

From January to April 2023, the index showed a slight decrease of 0.2% compared to the same period last year. Positive changes were evident in the manufacturing of textiles, wearing apparel, and leather products (18%), materials recovery (10.8%), mining and quarrying (9.1%), basic metals and fabricated metal products (8.4%), and other non-metallic mineral products (7.6%). Conversely, declines were seen in electricity supply (-14.1%), water collection, treatment, and supply (-10.1%), and the manufacturing of furniture and repair/installation of machinery and equipment (-5.2%).

At the same time, the General Government budget surplus reached €315.1 billion, equivalent to 1.1% of GDP, based on preliminary financial results released by the Statistical Service for the period of January-May 2023.

This surplus represents an increase of €173.5 billion compared to the same period last year, when a surplus of €141.6 billion, corresponding to 0.5% of GDP, was recorded.

Revenues witnessed a notable growth of 14.1% during the January-May 2023 period, amounting to a total of €4,645.5 billion. This increase can be primarily attributed to higher production and import taxes, as well as increased income and wealth taxation revenues.

On the other hand, expenditures experienced a rise of 10.2%, totaling €4,330.4 billion for the January-May 2023 period. This increase primarily stems from the growth in social benefits and personnel remuneration.

According to the Economics Research Centre (ERC) of the Department of Economics at the University of Cyprus, economic uncertainty in Cyprus decreased during the period of March to May. The ERC's reports indicate that the Economic Policy Uncertainty (EPU) index remained relatively low and stable in spring 2023, suggesting an improvement in economic uncertainty one year after the outbreak of the war in Ukraine. 

In March, April, and May, the EPU index recorded values of 236.62, 263.95, and 254.95, respectively. Although there was a temporary increase in the EPU index in April, it subsided the following month. This brief uptick can be partly attributed to the banking crisis in the USA in March, specifically the collapse of the Silicon Valley Bank, as noted by the ERC. Similar temporary increases were also observed in the EPU index values of other European countries like France, Germany, and Spain, primarily occurring in March.

The EPU index serves as a measure of economic uncertainty related to the effectiveness of implemented economic policies. It is constructed based on the frequency of newspaper articles that contain at least one word associated with three categories: Economy (E), Policy (P), and Uncertainty (U).

Currently, the EPU index has been developed for nearly 30 countries, including 11 in Europe. The Economics Research Centre of the University of Cyprus is now creating the corresponding EPU index for Cyprus and analyzing the impact of economic uncertainty on the Cypriot economy.

"We have observed that uncertainty in Cyprus was relatively lower and less volatile until 2007, but started increasing after 2008. The highest peaks were recorded in 2012 due to the banking crisis, in 2020 due to the Covid-19 pandemic, and in 2022 due to the Russia-Ukraine war," highlights the ERC.