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Main concerns of Cypriot businesses

28/09/2022 07:42

The cost of raw materials and energy are the two issues of the biggest concern of Cypriot businesses as seven out of ten enterprises (68%) participating in a survey have included these in their suggestions.

According to the Business panel, which is a continuation of the Mega Business survey conducted every six months, other issues of concern are staffing with 49%, liquidity reduction and red tape with 43% and 41% respectively.

Only one in ten businesses (11%) believe that the government's measures have helped them get through the difficulties, a press release regarding the survey issued Tuesday by the Cyprus Employers & Industrialists Federation (OEB) says.

The Mega Business survey records every six months the trends of the business community and acts as a Benchmark of Cypriot Businesses covering, inter alia, trends and forecasts regarding business performance, strategic options and other relevant parameters.

The current wave was conducted by CMRC CYPRONETWORK LTD of the CYPRONETWORK group and is the ninth in a row. The research is carried out in collaboration and with the sponsorship of the Cyprus Employers & Industrialists Federation (OEB).

The total representative sample amounts to 252 businesses. The survey was conducted in the period June/July 2022.

According to the survey, Cypriot businesses are also concerned about the lack of raw materials (31%), the decrease in turnover (27%), banking restrictions/requirements (23%), issues with suppliers as well as personnel costs with 21%. The participants in the survey have also mention as important problems the image of Cyprus abroad and securing financing from banks.

It is noted that business turnover shows an increase compared to the very low rates recorded by the two previous waves of the survey, but remains at low levels. More specifically, 24% report that the company's turnover has increased during the past six months, with the percentage of companies recording a decrease in their turnover remaining at quite high levels, at 41%.

It is noted that, business financing costs continue to rise with 15% reporting that they have increased.

The survey shows that, when it comes to business raw material purchasing costs it presents a rapid growth with eight in ten businesses (81%) reporting that it has increased even over last year's increased rate. It also underlines that this percentage is very high even compared to all the previous years of conducting the survey.