Survey: There are still serious problems in the market
According to a latest research, Cypriot businesses suffer from low demand and lack of liquidity.
The research was conducted by Cypronetwork group and the Cyprus International Institute of Management (CIIM) where the companies surveyed cited as their major problems low demand, clientèle and turnover and lack of liquidity. They also forecast that their turnover and profits will remain stable in the next six months.
Cypronetwork executive chairman Christos Michaelides told the press conference that “the results are slightly better compared to the previous survey, but there are still serious problems in the market”. Michaelides said that businesses must turn to new markets, partnerships and mergers as practical steps to face the difficult economic situation.
“Things seem to be better, the economy has stabilized and we see signs of a rather sluggish recovery” director of CIIM Theodoros Panayiotou said.
There will be more jobs in six months and less payroll cuts, but “do not expect miracles” he noted.
He pointed out that “we have to focus our attention on services and the creation of new products”.
“If we want a more dynamic recovery our businesses must perfect their products and turn to external markets” he stressed.
The research carried out between June and July with 400 participating businesses, found that one in three companies (33%) of those surveyed has created new jobs during the last six months, while the percentage of companies that have lost jobs is lower by 10 percentage points than in the previous survey.
Jobs were created but also lost mainly in the sectors of production of goods and services, sales and marketing. The new jobs were more than those lost, according to the survey.
The percentage of companies that have made payroll and benefit cuts was 31%, while the average reduction rate was 16.4%.
Entrepreneurs that appear fully or very satisfied with the course of their company during the last six months do not exceed 3%.