Filenews 9 November 2021
The CCCI participated in the great Pan-European Economic Survey of the Euro-Chambers for the Business Climate in Europe, which is conducted every year in the autumn with the participation of the European Chambers of Commerce. More than 52000 companies in 26 European countries participated in the survey and its results were announced today.
According to the survey, businesses are looking forward to an economic recovery for 2022 in contrast to last year's very pessimistic forecasts for 2021 in last year's survey. All indicators are expected to be better, fuelling the overall business environment with positive expectations regarding the speed of the recovery process.
The 29th annual edition of the economic survey reflects a common belief in recovery from the pandemic in 2022, but it is highlighted that while we are gradually entering a new economic phase, unprecedented threats and rising risks remain a possibility.
Also as the mismatch between supply and demand globally is expected to continue over the next year, concerns about possible supply chain disruptions and the shift in consumer behaviour persist.
Businesses expect affordable access to energy and raw materials to be the biggest challenge for the coming year, alongside uncertainty about labour market adjustments as a result of shortages of skilled workers and the general increase in labour costs.
Less optimistic findings for Cyprus
The findings for Cyprus (where the local survey was conducted by the CCCI) although improved compared to last year's period are generally less optimistic than those of the rest of the countries and are as follows:
- The main impact of the pandemic on Cypriot businesses were the problems that arose for tourism from the travel restrictions, the problems brought about by the restrictive measures, the changes in consumer behaviour, the disruptions in the supply chain and the difficulty in dealing with their loan obligations.
- The main challenges that Cypriot businesses expect to face in 2022 are, in order of priority, labour costs, the lack of a skilled workforce, access to finance, the continuous rise in energy and raw material prices, their digital transformation and environmental requirements.
- 24% of Cypriot businesses believe that they will have increased domestic sales in 2022 while 46% believe that their sales will remain at the same levels. Although forecasts are improved compared to last year they are still below the European average.
- 45% of Cypriot businesses believe that they will have reduced exports in 2022 while 31% believe that their exports will remain at the same levels. Here, too, although the forecasts are improved compared to last year's, they are still below the European average.
- 27% of Cypriot businesses believe that they will have increased staffing needs in 2022 while 56% believe that they will not have additional staffing needs. This result is very close to the European average.
- 29% of Cypriot businesses believe that they will make increased investments in 2022 while 48% believe that their investments will remain at the same levels. This result is relatively lower than the European average.
- 33% of Cypriot businesses express more optimism for 2022 while 48% believe that their optimism will remain at the same level, with the result being very close to the European average.
