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Cyprus records greatest EU annual drop in unemployment at 11.5% while GDP & inflation recover

By   /   29/07/2016  /   Comments Off on Cyprus records greatest EU annual drop in unemployment at 11.5% while GDP & inflation recover

Brussels, July 29, 2016/Independent Balkan News Agency

By Athanasios Athanasiou – CNA

Unemployment in Cyprus dropped another 0.2 percentage point in June 2016 compared to May, descending from 11.9% to  11.7%.

This, according to Eurostat means that another 1000 persons exited unemployment status in the course of the last month  (down to 47 000 total in June, from 48 000 in May). On an annual basis Cyprus is still leading unemployment reduction rates in the EU coming down from 15.7 (for the same month of 2015).

Meanwhile the euro area (EA19) seasonally-adjusted unemployment rate was 10.1% in June 2016, stable compared to May 2016 and down from 11.0% in June 2015. This remains the lowest rate recorded in the euro area since July 2011. The EU28 unemployment rate was 8.6% in June 2016, stable compared to May 2016 and down from 9.5% in June 2015. This remains the lowest rate recorded in the EU28 since March 2009.

Eurostat estimates that 20.986 million men and women in the EU28, of whom 16.269 million were in the euro area, were unemployed in June 2016. Compared with May 2016, the number of persons unemployed decreased by 91 000 in the EU28 and by 37 000 in the euro area. Compared with June 2015, unemployment fell by 2.114 million in the EU28 and by 1.363 million in the euro area.

Among the Member States, the lowest unemployment rates in June 2016 were recorded in Malta (4.0%), the Czech Republic (4.1%) and Germany (4.2%). The highest unemployment rates were observed in Greece (23.3% in April 2016) and Spain (19.9%). Compared with a year ago, the unemployment rate in June 2016 fell in twenty-five Member States, remained stable in Belgium and Estonia, while it increased in Austria (from 5.7% to 6.2%). The largest decreases were registered in Cyprus (from 15.1% to 11.7%), Croatia (from 16.2% to 13.2%), Bulgaria (from 9.7% to 7.2%) and Spain (from 22.3% to 19.9%). In June 2016, the unemployment rate in the United States was 4.9%, up from 4.7% in May 2016 and down from 5.3% in June 2015.

In June 2016, 4.194 million young persons (under 25) were unemployed in the EU28, of whom 2.915 million were in the euro area. Compared with June 2015, youth unemployment decreased by 492 000 in the EU28 and by 248 000 in the euro area. In June 2016, the youth unemployment rate was 18.5% in the EU28 and 20.8% in the euro area, compared with 20.6% and 22.5% respectively in June 2015. In June 2016, the lowest rates were observed in Malta (6.9%) and Germany (7.2%), and the highest in Greece (47.4% in April 2016) and Spain (45.8%).

Inflation:

When it comes to inflation, according to Eurostat, the euro area rate is expected to be 0.2% in July 2016, up from 0.1% in June 2016, according to a flash estimate. Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in July (1.4%, compared with 0.9% June), followed by services (1.2%, compared with 1.1% in June), non-energy industrial goods (0.4%, stable compared with June) and energy (-6.6%, compared with -6.4% in June).

GDP:

Still on the basis of a preliminary flash estimate, seasonally adjusted GDP rose by 0.3% in the euro area (EA19) and by 0.4% in the EU28 during the second quarter of 2016, compared with the previous quarter . In the first quarter of 2016, GDP grew by 0.6% in the euro area and by 0.5% in the EU28. Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 1.6% in the euro area and by 1.8% in the EU28 in the second quarter of 2016, after +1.7% and +1.8% respectively in the previous quarter.

Household per capita income:

Finally in the euro area, in real terms, household income per capita increased by 0.9% in the first quarter of 2016, after an increase of 0.3% in the previous quarter. Household real consumption per capita increased by 0.8% in the first quarter of 2016, after an increase of 0.1% in the fourth quarter of 2015.

In the EU28 household real income per capita increased by 1.3% in the first quarter of 2016, after an increase of 0.4% in the previous quarter. Household real consumption per capita increased by 0.8% in the first quarter of 2016, while it was stable in the fourth quarter of 2015.

Source: Cyprus News Agency

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