Cyprus deflation figure the worst in the EU
Statement by Georgos Loucaides, AKEL C.C. Spokesperson
AKEL C.C. Press Office, 18th June 2015, Nicosia
The magnitude of the negative consequences from the imposition of austerity policies could not have been reflected more characteristically than by the index on the Cyprus economy’s deflation.
Cyprus has the highest percentage rate in deflation which, according to figures released by Eurostat in May, reached -1.7% of the GCP, recording the worst in the European Union.
The policies that the government has been implementing all the previous period illustrate the size of the problem. The reduced liquidity in the economy, the bloody cuts in incomes and the absence of a strategy for growth further restrict the ability of households to get rid of their private debt. These are policies that continually generate the vicious cycle of austerity.
These figures reflect that unfortunately neither the statistical numbers, but nor the people are prospering in Cyprus today. As long as the government insists on implementing corresponding policies, the more the crisis will be shifted on the backs of the lower income strata.
