Based on seasonally adjusted data, the number of registered unemployed individuals in June 2023 reached its lowest level in the past 17 months, according to the Statistical Service of Cyprus. The data, collected and maintained by the District Labour Offices, indicates that there were 11,747 individuals registered as unemployed at the end of June 2023, which is the highest number since last April.

However, when considering data adjusted for seasonal fluctuations, which provides insights into the overall unemployment trend, the number of registered unemployed individuals in June 2023 decreased to 13,177. This represents a decline compared to the previous month's figure of 13,241, and it marks the lowest number of unemployed individuals since January 2022.

Compared to June 2022, there has been a decrease of 585 individuals or 4.7% based on the data maintained by the District Labour Offices. This decline can be primarily attributed to the sectors of trade, accommodation and food services, construction, and public administration. Additionally, there has been a decrease in new entrants to the labour market, further contributing to the overall decrease in unemployment.

Moreover, data shows that the Manufacturing, Mining, Quarrying, and Electricity Supply sectors experienced significant growth, leading to a substantial increase of over 7% in the turnover of the industrial sector in April 2023.

Specifically, in April 2023, the Industrial Turnover Index reached 175.3 units (base year 2015=100), representing a notable 7.2% increase compared to April 2022.

Looking at the period from January to April 2023, the index demonstrated a growth of 14.0% when compared to the corresponding period of the previous year.

Analyzing the data further, the Statistical Service highlighted that the manufacturing sector experienced a considerable increase, with the index reaching 180.1 units in April 2023, reflecting a notable 7.8% growth compared to April 2022.

Moreover, the mining and quarrying sector experienced a substantial increase of 21.1%, while the electricity supply sector saw growth of 10.1%.

Conversely, the water supply and waste management sector recorded a decline of 21.2% compared to April 2022.

Furthermore, according to a preliminary estimate by the Statistical Service, the House Price Index (HPI) has recorded a 5.9% increase for the first quarter of 2023. This growth marks the fifth consecutive quarterly increase of the HPI compared to the same period in 2022.

Specifically, the Housing Price Index (HPI) for the first quarter of 2023 stands at 110.14 units. It's worth noting that this is the fifth consecutive quarterly increase observed on an annual basis. The last decline in the Index occurred in the fourth quarter of 2021, with a decrease of 5.2%.

In comparison to the fourth quarter of 2022, the HPI experienced a 2.0% increase. This follows a 4% decrease in the HPI during the fourth quarter of 2022, as compared to the third quarter of the same year.

Meanwhile, Central Bank of Cyprus data shows that the total amount of new loans in May surged to €1.07 billion, more than doubling from the previous month. This increase was primarily driven by renegotiated loans that involved signing new contracts. Additionally, fresh new credit rose to €536.5 million.

Specifically, pure new loans totaled €556.8 million, a significant rise from the previous month's figure of €202 million. Among these, corporate loans over €1 million accounted for the largest portion of new lending, amounting to €351 million in pure new loans. Loans for house purchases also experienced substantial growth, nearly doubling compared to the previous month, reaching €105 million.

New corporate lending up to €1 million reached €49 million. Consumer lending amounted to €22.7 million, and other loans totaled €9.7 million.

Moreover, there was a notable increase in renegotiated loans for which new contracts were signed, reaching a total of €536.4 million. This was primarily driven by borrowers, particularly corporations, rescheduling their loans in response to rising interest rates.

Among the renegotiated loans, corporate loans over €1 million accounted for €402.5 million, while housing loan restructurings followed with €66.2 million. Renegotiated corporate loans up to €1 million amounted to €40.9 million. Consumer renegotiated loans amounted to €6.5 million, and other loan restructurings were €20.9 million.

In addition, Cypriot banks responded to the rising interest rates imposed by the ECB in an effort to control inflation by significantly increasing the interest rates they offer to depositors in May, as lending rates also continued to rise.

For households with a maturity of up to one year, interest rates climbed to 0.79%, marking a 38 basis point increase compared to the previous month's rate of 0.41%. This current rate represents the highest level observed since August 2018.

Corporate deposit rates also experienced a notable increase, rising by 46 basis points in May to reach 1.19%. This is the highest point recorded since December 2017.

Furthermore, lending rates followed the upward trend set by the ECB, except for rates on housing loans, which decreased to 4.21% in May from 4.45% in the previous month.

According to the CBC, rates for consumer credit rose to 4.97% compared to 4.85% in the previous month. Additionally, the interest rate on loans to non-financial corporations for amounts up to €1 million increased to 5.37% compared to 5.31% in the previous month.

In contrast, the interest rate on loans to non-financial corporations for amounts exceeding €1 million saw a substantial increase to 6.35%, compared to 5.41% in the previous month.