How would you assess the current state of the Cypriot economy, and which sectors or strategic initiatives do you consider most significant in driving new business and investment opportunities in Cyprus?

The Cypriot economy today is in a position of resilient, but not complacent, strength. Growth remains solid by EU standards with real GDP expected to hover around 3–3.5% in the coming years being supported by strong public finances, declining public debt, and historically low unemployment.

At a glance it looks like inflation has normalised after the post-pandemic shock and all negative geopolitical developments with the war in Ukraine easing pressure on households and businesses and creating a more predictable environment for investment.

At the same time, we are acutely aware of external risks: a fragile regional geopolitical environment, slower growth in key trading partners, and the need to continuously upgrade productivity and competitiveness. Our policy and advocacy focus at CCCI is therefore on turning today’s stability into long-term, sustainable growth.

In terms of sectors, Cyprus remains a service-driven, outward-looking economy. Services account for close to 85% of economic activity, with tourism, shipping, professional and financial services, and ICT as key pillars. New kid on the block would be the higher education industry, which grew rapidly in the last few years. Higher education, research, and specialised health services are also emerging as important export sectors.

Tourism and hospitality continue to attract sizeable investment, supported by improvements in air connectivity and an expanding high-end product. Shipping and maritime services leverage Cyprus’ position as one of the leading shipmanagement centres globally.

Professional and business services – legal, accounting, fund administration – together with a competitive headquartering regime, have underpinned strong inflows of international companies and talent in recent years. The fastest-growing frontier, however, is in technology and innovation. The expansion of the ICT sector, the relocation of tech companies to Cyprus, and the build-out of digital infrastructure are changing the profile of the economy and creating high-skilled employment.

Strategically, three horizontal agendas are especially important for new business and investment:

• The Cyprus Recovery and Resilience Plan (RRP) – a €1.2 billion programme of reforms and investments, nearly half of which targets the green transition and about a quarter the digital transition, with multiple schemes directed to enterprises and SMEs.
• Green and energy transition – accelerated deployment of renewables, energy-efficiency schemes for businesses, and major projects such as the Great Sea Interconnector, which will end Cyprus’ electricity isolation and enhance energy security and price stability over time.
• Digital transformation and regulatory reforms – implementation of the National Digital Strategy, justice and public-administration reforms, and simplification of licensing and permitting frameworks, all of which aim to reduce red tape and improve the ease of doing business.

At CCCI, we see our role as a bridge between the business community, government, and international investors: promoting Cyprus as a competitive, reliable hub in the Eastern Mediterranean, while ensuring that the policy mix remains pro-enterprise, innovation-friendly, and aligned with Europe’s green and digital future.