The full report of findings of the latest edition (Autumn 2023) of the Limassol Chamber of Commerce and Industry Business Barometer was completed at the end of November. Despite any individual observations that can be made, the central conclusion, which is pervasive in the findings, points to an increased caution and a less optimistic assessment of the future. However, the overall picture cannot be characterized as particularly problematic, as while comparisons with Spring are not favorable, this is not the case compared to Autumn 2022, and therefore it cannot be said that there is a recurring downward trend, not yet anyway.
The relative downturn of Autumn 2023 is not unrelated to external factors, most prominent of which is of course to the ongoing conflict in the Middle East, without this necessarily meaning that without it, the results would certainly have been much better, since the forecasts for a slowdown of the national economy existed before what is happening now on the Israel-Gaza front.
In the current edition of the Barometer, caution is evident in parameters such as the intention to recruit human resources and proceed with new investments, in projected sales and, most importantly, with regard to confidence in the prospects of the Cyprus economy.
As far as the main problems are concerned, these mainly refer to the serious shortages of human resources in almost all sectors of economic activity, the rising trend of interest rates, the insufficient support for business by government departments and the high labor costs. Factors of concern are the high prices of raw materials and other commodities, the Middle East conflict and its possible extensions in time and space. Concern about the impact of the Russian-Ukrainian crisis has not faded away, but its intensity has diminished.
This Barometer included, for the first time, a question on the adequacy of companies' knowledge on issues related to the obligations arising from the application of environmental, social and governance criteria, commonly known as ESG. On a scale of 1 to 10 (with ten referring to excellent knowledge) the average fell below 5, a finding that highlights the need for significant improvement.
The full detailed findings of the Barometer are accessible to any interested party through the LCCI website (https://www.limassolchamber.eu/assets/images/DownloadsGr/1701933649.pdf).
