Declining net interest income has forced banks to raise charges and readjust their interest rates on deposits and loans, as rates in the euro area remain at historic low levels.

The consumer price index rose 2.3% year-on-year in July 2018 mainly on higher energy prices, the statistical service said.

Building permits rose in the first five months of 2018 an annual 26%, the statistical service said recently.

The government is said to be mulling its options after the consortium holding the license for the Aphrodite gas field proposed amending the revenue-sharing agreement with the Cypriot state.

CyprusProfile talks to Antonis Antoniou, Executive Director of Giovani Group, about the key areas of opportunity or growth in the real estate sector, and expectations for Cyprus in 2018.

The government recently sold €100m in treasury bills at an average yield of minus 0.22%, the Public Debt Management Office (PDMO) said.

The economic sentiment indicator rose by two units in a month in July 2018, to 111,1, on improved confidence among companies in the services, construction, and industrial sectors, the University of Cyprus said.

Cyprus’ unemployment rate fell in June 2018 to 8.2% from 8.3% in May and 11% in June 2017, the sixth lowest in the European Union, the European Commission’s statistical office said.

The government generated a fiscal surplus of €3269m on a cash basis in the first half of 2018 compared to a surplus of €64.5m the year before, the Finance Ministry said.

Moody's Investors Service, has upgraded the government of Cyprus' long-term issuer rating to Ba2 from Ba3.