Scope for fiscal stimulus is limited amid energy crisis
The global economy is facing a serious, but not unprecedented, energy crisis. The transportation of oil and natural gas has been negatively affected, mainly due to the closure of the ...
Articles
No seat at the table: Europe absent from Trump-Xi dialogue
The recent meeting between the presidents of the United States and China marks a phase of “managed stability,” in which competition continues but with mechanisms designed to prevent escalation. For ...
The prosperity paradox
The perception that numbers point to prosperity but citizens suffer is widespread. A typical example is the Democratic Party’s loss in the 2024 US elections, despite the generally satisfactory state ...
Energy security and economy still depend on oil
In recent years, the world has witnessed record investment in environmentally friendly renewable energy, rapid advances in battery technology and ambitious net‑zero commitments, all supported by sharply falling costs. ...
Scientific study forms a good basis for economic policy
In the EU, a significant number of existing high‑level research centres focus on empirical studies of issues of public economic interest. Such centres aim to support, in a practical ...
Misinformation has major macroeconomic impacts
Advances in technology have enabled the rapid spread of information and knowledge, but, at the same time, they have amplified the phenomenon of misinformation and the circulation of false news.
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War in the Middle East and its impact on the global economy
Recently, the global economy has faced severe challenges, notably the pandemic, the Ukraine war and disruptions in global trade. Currently, it is once again confronted with a new and rapidly ...
The lesser-known challenges of public debt
As the EU attempts to balance fiscal discipline with the need for increased investment, public debt remains a key indicator of macroeconomic stability. Eurozone total debt stands at 88.5 per cent ...
Recovery and Resilience Fund: assessment and lessons for EU’s next financial framework
The EU is generally perceived as lacking the necessary flexibility to adapt to rapidly changing conditions in a timely manner, due to its complex political system and lengthy decision‑making ...
Public wage systems should benefit society
The relationship between wage levels in the broader public sector and economic growth is of particular interest. Academic literature confirms the view that comparatively low wages increase the risk of ...
How does trust in institutions help the economy?
Citizens’ lack of trust in public institutions is increasing, especially in developed economies, including Cyprus.
The quality of institutions is a key determinant of prosperity, as highlighted, among others, by ...
Economy in 2026: the world finds itself in a delicate balance
After a year of intense volatility, the world economy enters 2026 with a complex mix of challenges and opportunities.
Most economists expect that growth will remain moderate by historical standards, around 2.4 ...
As COP results fall short, national action plans needed
The United Nations climate change conference, known as COP30, recently held in Brazil, was a landmark one. It was the tenth since the Paris Conference, in which a binding agreement ...
World grapples with crypto and stablecoins
The regulation of digital assets has become a global priority, as governments and supervisory authorities attempt to balance innovation in payments and blockchain applications with the need to safeguard financial ...
Bureaucracy: challenges and prospects for reform
Fighting bureaucracy, as a prerequisite for enhancing economic growth, is among the top priorities of many countries. In the US and Argentina, the approach is radical, characterised by large-scale horizontal ...
Italy and France: a role reversal in the eurozone?
Following the global financial crisis of 2008, several European countries – Portugal, Italy, Ireland, Greece and Spain – faced high public debt, weak economic growth and fragile banking sectors.
These vulnerabilities led to ...
IMF assessment: global economic developments and stability challenges
During the week of October 13-19, the annual meetings of the International Monetary Fund (IMF) and the World Bank took place, with discussions primarily focused on long-term global economic challenges ...
Foreign direct investment: Cyprus can turn challenges into opportunities
Foreign direct investment (FDI) is a key driver of economic growth, technological advancement, productivity increase and international competitiveness.
For small countries like Cyprus, it offers essential capital, specialised knowledge and ...
Reactions to the upcoming EU budget are mixed
Currently, a controversial discussion is taking place concerning the EU budgetary framework for the period 2028-2034. This topic will certainly be a key priority in the coming months, which coincide ...
Ukraine: destruction and economic prospects
Efforts to broker peace between Russia and Ukraine have so far been unsuccessful, but if there were an end to the war, what would that look like for Ukraine? It ...
Trump’s economic policies may have number of long-term effects
In a recent article, we discussed the short-term effects of President Trump’s economic policies on global equity and bond markets. Today, we will try to analyse the long-term effects, ...
Information is key to economic decision-making
In modern economies, which are characterised by complexity and continuous change, information plays a vital role in resource allocation and price developments. Analysts and professionals base their perceptions and actions ...
The need for a new industrial policy in the EU
The EU is currently facing adverse shocks that reflect inherent weaknesses, including: (a) the difficulty in building consensus and promoting unified positions, (b) an over-dependence on the US, especially on ...
Markets fluctuate based on Trump’s ‘Taco trade’
President Trump’s announcement in April of sweeping tariffs – starting at a base rate of 10 per cent for all countries and escalating for China and specific product categories – triggered immediate ...