Cyprus experienced an economic contraction, with its GDP decreasing by 0.4% in Q2 2023, a shift from its 1.1% growth in the prior quarter, as per the recent estimates from Eurostat, the European Union's statistical arm.

Among the standout performers, Lithuania led the pack with a 2.9% GDP growth, followed closely by Slovenia at 1.4% and Greece at 1.3%. On the flip side, Poland's economy contracted the most, declining by 2.2%, with Sweden and Austria also experiencing drops of 0.8% and 0.7% respectively.

In the second quarter of 2023, the Euro area's GDP witnessed a slight increase of 0.1%, while the EU's GDP remained unchanged from the previous quarter.

This modest shift comes on the heels of the first quarter's performance in 2023, during which the Euro area's GDP grew by 0.1%, while the EU experienced a 0.2% growth.

Year-on-year analysis shows the seasonally adjusted GDP for Q2 2023 grew by 0.5% in the Euro area and 0.4% in the EU. This is a deceleration from the preceding quarter, which witnessed a more vigorous 1.1% growth in both regions.

Inflation in Cyprus climbed to 2.6% in August 2023, a significant shift in the Consumer Price Index (CPI) which ended its year-long declining trend. The CPI for August registered 116.34 units, up 1.04 units from July's 115.30 units.

The Statistical Service of Cyprus highlighted that the CPI from January to August 2023 had an overall growth of 4.0% compared to the same timeframe in 2022.

Breaking down the data, August 2023 experienced a notable 14.0% price hike in agricultural goods when pitted against August 2022. Conversely, petroleum products, while seeing a sharp 9.6% drop year-over-year, had a 5.1% uptick from July 2023, underlining the sector's volatility.

For August 2023, when matched against the previous year:

• Food and Non-Alcoholic Beverages stood out with a 10.0% price surge.
• Transport costs dropped by 3.1%, making it the category with the largest decrease.

However, compared to July 2023:

• Transport showed the most significant month-over-month rise, increasing by 3.0%.

Considering the cumulative effect:

• The Food and Non-Alcoholic Beverages sector had the most positive influence on the CPI, adding 2.11 units from August 2022.
• Transport, however, pulled the index down with a decrease of 0.59 units.

For month-to-month changes in August 2023:

• Transport and Housing, Water, Electricity, Gas, and Other Fuels had the most positive effects, adding 0.54 units and 0.44 units to the CPI respectively.

Year-over-year for August, the dip in petroleum products prices impacted the CPI significantly, reducing it by 1.16 units. However, contrasting with July 2023, both Petroleum products and Fresh Vegetables positively influenced the index, contributing 0.52 units and 0.44 units respectively.

The latest data from the Statistical Service of Cyprus has shown positive employment trends for the 2nd quarter of 2023. Both employment figures and hours worked witnessed a rise compared to the same period last year.

In detail, employment in the 2nd quarter reached 464,107 individuals, a 1.5% increase from 2022. This includes 413,121 employees and 50,986 self-employed individuals. Sectors leading this employment surge were mainly Administrative and Supporting Service activities, Information and Communication, and Other Service activities.

Furthermore, there was a 1.3% rise in the total number of hours worked, which was estimated at 211.6 million hours for the quarter. As with the employment trends, significant growth in hours worked was primarily noted in Administrative and Supporting Service activities, Information and Communication, and Other Service activities.

August 2023 witnessed a remarkable 113.6% boost in Cypriot beer exports, equivalent to an additional 193,315 litres. This significant increase played a key role in elevating the total beer deliveries, which encompass both domestic sales and exports, by 1.5%.

As revealed, the combined beer deliveries for August 2023 amounted to 5,195,978 litres. This marks a 1.5% rise from the deliveries recorded in August 2022.

While the domestic beer market experienced a slight decline of 2.4% year-on-year, amounting to 4,832,426 litres, the international market told a different story. Beer exports in August 2023 skyrocketed to 363,552 litres, a stark contrast from the 170,237 litres registered in August of the preceding year.