KTEZO: "Nearly 40% of Small and Medium-Sized Markets Have Closed"

In a statement issued by KTEZO, a recent study focused on markets selling essential consumer goods and off-licences selling mainly beverages registered with the chamber found a dire economic picture. The study examined all such businesses within the Nicosia district over the past two years, checking both insurance records and direct contact, and found that 90 out of 226 businesses had closed down.

The statement highlighted the unchecked expansion of hypermarkets and chain stores, describing it as a clear sign of the deepening inequality in the market.

"With the recent economic contraction, rising bankruptcies, and growing unemployment, we believe this example speaks volumes," KTEZO said, warning that the economic downturn is continuing to tighten its grip.

"Neither Price Hikes Nor Inflation Are the Solution"

The statement further pointed out that in addition to already high prices, new price increases are still being implemented. Meanwhile, despite these increases, nearly all tax revenue continues to be spent on public sector salaries, mirroring the trend seen during the pandemic. According to the most recent research, the state's ability to cover its expenses with tax income has dropped to around 60%, leaving a 40% budget gap.