The crucial role of official statistics in shaping effective economic policy, supporting evidence-based decision-making and combating misinformation was highlighted during an event marking European Statistics Day on 20 October.
The Ministry of Finance, Statistical Service of Cyprus, Fiscal Council and Cyprus Statistical Society stressed that reliable data analysis is a prerequisite for sound policymaking and for understanding economic and social developments.
Finance minister: Data must be interpreted, not just collected
Finance Minister Makis Keravnos said responsible and effective economic policymaking requires reliable data, comprehensive economic analysis and, above all, the correct interpretation of economic developments.
"It is not enough to know how economic indicators are changing. We must understand why they are changing, which factors are influencing them and what impact they have on the economy and society," he said.
Keravnos also stressed the importance of distinguishing between:
- Temporary fluctuations and long-term structural trends.
- Short-term fiscal improvements and permanent changes.
- Immediate risks and long-term challenges.
He noted that preparing the state budget, setting fiscal priorities, assessing growth prospects and safeguarding the sustainability of public finances all depend on continuous monitoring and credible analysis.
According to the minister, responsible economic governance also requires regular evaluation of policies and the ability to intervene quickly when conditions change.
"The real value of statistical information lies not only in the accuracy of the numbers but in our ability to interpret and use them correctly for the benefit of the economy and society," he said.
Statistics are an investment in the future
Fiscal Council chairman Andreas Charalambous argued that investment in statistics is an investment in the future.
He highlighted the importance of accurately and promptly recording the fiscal impact of government decisions and policy announcements.
Modern statistical methods, he said, allow governments to better assess the long-term consequences of policies. He pointed to lessons from Greece's financial crisis, noting that some decisions with significant future fiscal costs had previously been assessed mainly through their short-term effects.
The crisis, he said, demonstrated the importance of reliable statistics for timely decision-making.
Charalambous also underlined the need for proper recording of transactions involving public assets.
Data should underpin the entire policy cycle
According to Charalambous, public policymaking should begin with data collection and analysis, continue through policy design and implementation, and conclude with evaluation.
For a small, open economy such as Cyprus, he said, the availability of timely and reliable statistics is particularly important.
At the same time, the growing volume of information makes data quality, analytical methodology and trust in conclusions even more critical.
He also pointed to emerging challenges including:
- Green transition.
- Sustainable development.
- Digital transformation.
- Social cohesion.
- Competitiveness.
All of these, he said, require enhanced statistical monitoring.
Statistical Service: Evaluation should begin from the start
Speaking at the event, Statistical Service director Stavros Karayiorgis said official statistics should form an integral part of the entire public-policy cycle rather than simply serving as a source of information once decisions are being made.
Every major policy initiative, he said, should start with a clear understanding of the problem being addressed, include measurable objectives and be accompanied by appropriate monitoring indicators.
"Evaluation cannot begin after a policy has already been implemented. It must be part of the original design," he said.
Karayiorgis argued that producing reliable, quality and comparable statistics is demanding, but turning those figures into meaningful knowledge is an even greater challenge.
That includes understanding the causes and consequences of economic and social developments and linking statistical evidence to policy decisions.
During implementation, he added, continuous monitoring should allow deviations to be identified quickly and corrective measures to be introduced when necessary.
"It is not enough to know what decisions were taken or how many public resources were allocated. We must be able to evaluate what was actually achieved, who benefited and whether the results matched the original objectives," he said.
Central Bank highlights importance of official statistics
The Central Bank of Cyprus also marked European Statistics Day, noting that official statistics play a vital role in understanding both the economy and society.
In a statement, the bank said statistics help provide a clearer picture of the increasingly complex world around us.
