Two new, in-depth studies by PwC Cyprus on the impact of COVID-19 on businesses and the wider economy as well as suggestions of the organisation on the way forward were released today.
The “Restart Cyprus” report captures the ways in which the recession, as a result of the pandemic, intensifies the need to increase productivity and improve the competitiveness of the economy. At the same time, according to the report, the key to success in overcoming the crisis once again lies in the effective cooperation between the state and the private sector. In addition, it analyses the organisation's recommendations on various measures that could be taken in order to achieve recovery. Based on the findings of the report, returning to the old norm, before the pandemic, is not a viable option and therefore maximum adaptation to the new-normal is necessary.
The pandemic crisis and its management can be classified into three main phases:
1. Initial outbreak and containment 2. Coordinated return to a “new normal” 3. “New normal”, preparing for a possible virus resurgence (2nd wave) and future pandemics
Cyprus is currently in the second phase of the crisis. Collective discipline is needed in order to adhere to the health and safety guidelines issued by the government so as not to risk a re-escalation of the crisis and even more severe economic consequences. At the same time, we should also start planning an action plan in view of the third phase.
The report aims to contribute to this important debate, putting forward a series of recommendations aimed at both the State and the business community. The recommendations have been classified into three main areas: economy and finance, society and health.
The report "COVID-19: Impact of the pandemic on the Cyprus Economy" comes to fill the gap in the current volume of economic analysis of the effects of the pandemic, by assessing the economic impact of COVID-19 in almost 20 sectors of the Cypriot economy and capturing the reality that businesses in Cyprus are currently experiencing.
In addition, for a better understanding of the potential financial consequences of the pandemic in Cyprus, the report includes an analysis of the impact based on scenarios, with the support of a special team of our financial advisors from PwC UK. These scenarios are based on the knowledge and predictions of experts of various sectors, but also the latest analysis of epidemiologists, which also guide political decisions.
In his statements, the CEO of PwC Cyprus, Evgenios Evgeniou, underlined the importance of the two reports for both the business community and the state. “The current situation presents a unique opportunity to fast-track much needed reforms and to focus on a new national economic strategy. Learning from the past, building on the successful handling of the pandemic to-date and through a collective effort between the government and private sectors this could be the opportunity for Cyprus to recover in a short period of time, "he noted.