The inflation rate in Cyprus is declining, but is still high [at 6.7 per cent in February 2023]. Interest rates are very low, 1.29 per cent for household deposits and 1.27 per cent for business deposits. In addition, there are no other investment opportunities in Cyprus, as the Cyprus Stock Exchange shows low returns of about 2 per cent per annum.
Inflation increases the cost of borrowing and at the same time increases the cost of production, making it more difficult to produce goods and services, including production in the market of real estate, houses, apartments and so on.
Continue reading at source: cyprus-mail
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