The economy of Cyprus is back on a sound footing, experiencing positive growth rates and fiscal surpluses. This is reflected in the improved credit ratings and the ability to borrow from international markets at a lower cost which support a positive outlook for the country as confidence in the Cypriot economy has been largely restored.
Foreign Direct Investment inflow is on the rise, whereas new investment opportunities are being created in traditional sectors such as tourism, real estate and shipping whilst at the same time the education and energy sectors are developing. More international companies have strengthened their base in Cyprus in line with the stricter international taxation rules regarding substance and momentum is building in the development of Cyprus as a funds jurisdiction.
In this ever-changing and highly competitive international environment, the services sector remains agile, implementing new strategies aimed at remaining relevant to local businesses and international investors.
The sector leverages the country’s appeal as a business hub and builds on the expertise of its professionals to further develop services such as wealth management, funds services, cyber security and digital in order to deliver solutions that add value to international investors.
Challenges still lie ahead. It is important that we significantly improve Cyprus’ position in the international doing business and competitiveness rankings and fully embrace the digital era, both at a corporate and public sector level. Non-performing Loans and high private debt remain the biggest challenge facing banks, regulators and the government and need to be addressed in a comprehensive and effective manner.
We need to stay focused on our goal to achieve sustainable and long-term growth and to implement the reforms that will improve competitiveness and productivity and allow the country to fulfil its potential and reach the desired levels as regards income and employment. Creating an even more outgoing, competitive, innovative and resilient economy.