The Economics Research Centre (CypERC) produces rigorous analyses on issues of the Cypriot economy using novel and state-of-the-art methodologies and building upon the in-depth institutional knowledge of the local economy the Centre has acquired over the years. The analyses produced at the Centre are communicated to a wide range of audiences, including the scientific and business community, governmental organisations, NGOs, trade unions and the media.

Research activities are divided into the following sectors:

Microeconomic and welfare analysis

The sector analyses topics regarding the economic welfare of households, the role of the state and productivity.  Topical issues which are currently on the research agenda of the sector include the impact of social policy, the public-private pay gap in Europe, the effects of the tax system on differences in labour supply outcomes across countries, competitiveness and the construction of productivity indicdes for the Cypriot economy.  The responsibilities of the sector also include the maintenance and updating of the tax-benefit microsimulation model for Cyprus which is part of the European model EUROMOD and the coordination of the field research conducted for the collection of data for individuals aged 50 and over as part of the European research project SHARE. The research outcomes of the sector address a wide audience including academics, researchers, and policy makers and are published in the CypERC Economic Policy/Analysis Papers, in peer-reviewed academic journals or as policy reports.

Macroeconomic Forecasts and Analysis

The sector focuses on the development of models/tools for macroeconomic analysis of the Cypriot economy and the construction of forecasts for macroeconomic indicators, both at the aggregate and sectoral level. Details about the methodologies employed for macroeconomic analysis and forecasting are published in the Economic Analysis/Policy Papers series of the Centre.

GDP growth and inflation forecasts are published on a quarterly basis along with an analysis of recent developments and outlook for the Cypriot economy in the bulletin Economic Outlook.

Moreover, the sector coordinates the programme for the measurement of economic confidence in Cyprus via the conduct of surveys among business executives in different sectors of the economy, and among consumers. Business and Consumer Surveys in Cyprus are carried out within the framework of the Joint Harmonised EU Programme of Business and Consumer Surveys. The Surveys record business executives’ and consumers’ perceptions of current economic conditions as well as their expectations concerning the evolution of economic variables. The results of the Surveys are published on a monthly basis in the bulletin Business and Consumer Surveys.

Research in the above two sectors is partially sponsored by the Central Bank of Cyprus, the European Union and the Ministry of Finance.


This field of research at CypERC was pursued under the project “Employment in Europe” funded by the European Research Council (Advanced Grant) for the period 2013 – 2018 and coordinated by the Nobel Laureate Prof C. Pissarides. It focused on the study of employment and unemployment in Europe and examined issues such as: job creation by sector; wage inequality; public sector employment and wage subsidisation relative to the private sector; the compatibility of welfare state with EU targets for employment and the number of jobs vis-à-vis the hours worked for each job.

Project team members at CypERC: Vasiliki Bozani (PhD in Economics, University of Crete), Robert-Duval Hernandes (PhD in Economics, Cornell University, Neophyta Empora (PhD in Economics, University of Cyprus), Chrystall Kapetaniou (PhD in Management, University of Kent), Georgia Katsifaraki (Master in Business Administration, University of Cyprus), Paris Nearchou (PhD in Economics, University of Cyprus).