Banks & hotels have caused economic confidence downturn in Cyprus

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The European Research Council using figures provided by the University of Cyprus continue to research the latest trends and general consensus of the population in Cyprus, and recent figures show that the islands economic sentiment indicator dropped by 7 points last month to 110.9; the lowest it has been since October 2016.

The negativity and loss of confidence seems to mainly be towards the services sector, more specifically banks and hotels in the hospitality sector. The European Research Council has given an analysis of why this deterioration of good faith has occurred. Namely, Cyprus residents seem to predominantly be driven by the negative responses towards the sub-sectors within financial services and activities assisting insurance services, rather than the islands services as a whole.

Likewise, the downward revisions of demand expectations in the subsectors of hotels, warehousing and support activities for transportation also had a damagingly negative effect on services confidence.