Insider Economy Household investment in Cyprus on the rise

Household investment in Cyprus on the rise

The household investment rate in Cyprus in 2017 was among the highest in Europe and stood at 10.2%, but it is far behind that of 2008 (in the pre-economic-crisis period) when it was 19.61%.

Investment is mainly on the renovation of dwellings and purchase of new equipment, including machinery and transport equipment.

In 2017, household investment rates in the Member States of the European Union ranged from as high as 11.3% in Finland, 11.0% in the Netherlands, 10.2% in Cyprus, and 10.1% in Belgium and Luxembourg, to less than 6% in Spain, Portugal, Bulgaria and Latvia. Across the EU, households invested 8.2% of their gross disposable income in 2017. Households finance investments through their disposable income or borrow or use accumulated savings. Household investment consists mainly of the purchase and renovation of dwellings. In 2008, a year during which the impact of the global crisis was not so strong on Cyprus, the gross investment rate of households stood at 19.61%.

 

Read more: Households and businesses debt records small drop on quarterly basis in June

The debt owed by households and businesses recorded a small drop on a quarter-to quarter basis in the second quarter of this year, data released by the Central Bank of Cyprus show.

According to a summary of the data published by the Central Bank the financial assets of households were at the end of June 2018 €45.5 billion, 64% of which was cash and deposits, 2% securities, 20% shares and 14% other financial assets.

Household debt stood at the end of last June at €20.2 billion, or 100.2% of GDP, recording a small drop in relation to the previous quarter, the Central Bank said.

The drop is more significant —  close to 19% —  when compared to December 2016 when the debt of households was equivalent to 119% of GDP.

At the same time, non financial companies’ assets reached €58.8 billion, 16% of which accounts for cash and deposits, 7% loans, 1% securities, 49% shares and 27% of which concerns other financial assets.

The debt of non financial companies stood at the end of June 2018 at €39.5 billion or 196.4% of GDP, also recording a small drop in relation to the previous quarter.

Compared to December 2016, when the debt was at 219% of GDP, the drop is greater and reaches 23%, the Central Bank said.

According to the data insurance companies financial assets were recorded at the end of June at €3.9 billion, 12% of which in cash and deposits, 2% in loans, 25% in securities, 41% in shares and 20% in other financial assets.

Investment companies’ assets were at the end of June €4.0 billion, 3% was invested in cash and deposits, 8%  in loans and securities, 85% in shares and 4% in other financial assets.

Retirement funds investments were €3.6 billion of which 38% was invested in cash and deposits, 16% in loans, 2% in securities, 35%  in shares and 9% in other financial assets.

(Cyprus News Agency)

 

Top Stories

New record number of new cases of COVID-19 on Tuesday: 152

The Health Ministry announced 153 new COVID-19 cases on 20 October, out of 4,410 laboratory tests, taking confirmed infections to 2, 839. The break-down of...

Stench in Kokkinotrimithia and Mammari due to farms and burned garbage

Citizens of Kokkinotrimithia and Mammari contacted philenews and complained that at the Kafkalla location some people threw a huge quantity of garbage and set...

Police chasing suspects in Paphos

Members of the Anti-Narcotics Unit who were watching some suspects for drug trafficking, according to first information, chased a suspicious vehicle which tried to...

71-year-old dead in accident

During an accident that took place this morning in the district of Nicosia, 71-year-old Andreas Alexandrou from Kato Moni of Nicosia District lost his...

Rain and hail in Lympia and Xylotympou (PHOTOS)

Rain and hail were seen in various areas of Cyprus. Social media users published photos from Lympia and Xylotympou. (philenews)

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...