November 6, 2009
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News: Cyprus Economy; Signs of Improvement
Few nations have been untouched by the difficult economic conditions. The recession has taken a toll on nearly every country in the world. However, some countries have begun to see narrow relief of rising credit card defaults. In spite of these moderate signs of improvement, credit card defaults and unemployment rates are expected to continue to be a problem into 2010. On a positive note, consumers have taken measures in their own hands to help improve the economy by reducing their credit card spending. Cyprus recently announced that its nation's card spending is down by 3 percent this year to date.
According to statistics from JCC Payment Systems LTD (JCC), Cyprus' primary debit and credit card processing company, the country's card transactions fell to 1.5 billion Euros during the first nine months of 2009. Card transactions fell 4 percent from same time last year to 142.12 million Euros. The numbers are not as significant as the U.S. that reported as its nation's credit card debt for September as $889 billion in September; an annualized 13.3 percent drop. Nevertheless, Cyprus citizens should be proud of their accomplishments. The JCC also reported foreigners have contributed to the decline as foreign card transactions decreased by a whopping 17 percent to date 2009.
Cyprus depends on its tourism credit card spending for approximately 11 percent its gross domestic product. An increase in the value of the euro against the pound contributed to the rising cost of living in Cyprus, making it more expensive for travelers, especially those from Britain. Tourism fell by over 16 percent so far this year. In spite of its difficulties during the recession, Cyprus citizens are among the most prosperous people in the Mediterranean region. Internationally, Cyprus boasts its geographical location as a "bridge" between three continents, along with its educated English-speaking population, moderate local costs, good airline connections, and telecommunications.