banking sector haircut

Cyprus

A macroeconomic assessment of the Cypriot economy after the haircut

ATHENS|By Marios Zachariadis via Macropolis| The apparently fast adjustment of the Cypriot economy and the private (non-bank related) sector in particular, has helped facilitate a smaller than anticipated drop in consumption and GDP as the impact of reduced nominal salaries on consumption has been somewhat alleviated by falling prices, along with the use of past savings.