The level of uncertainty measured by the Cyprus Economic Policy Uncertainty (EPU) index was on average slightly higher during winter 2022-23 compared to autumn 2022.
According to the Economics Research Centre (ERC) of the University of Cyprus (UCY), during January 2023 economic uncertainty in Cyprus increased temporarily, a peak driven mainly by the presidential elections.
In February 2023, the value of the EPU index dropped again to lower levels. It is noted that presidential election periods have led to similar temporary increases in uncertainty in other countries (such as Greece, the US, and Ireland).
The EPU index is equal to 227.20, 315.47, and 260.13 in December, January, and February, respectively.
ECR also notes that it would be interesting to measure the increase in economic uncertainty in the next months, triggered by the banking turbulence that erupted after the collapse of the Silicon Valley Bank on the 10th of March.
Source: Cyprus News Agency