Christos V. Vasiliou: KPMG Cyprus aims to introduce new innovative services – Changes expected in the sector

Significant changes are expected in the provision of professional services, according to Christos V. Vasiliou, CEO of KPMG Cyprus. He says this is driven by the growing need for technological upgrades and innovation, increasing regulation, and the rapidly rising cost of service delivery.

In an interview with InBusinessNews, as part of the "IN Business Forecasting 2025" series, Vasiliou notes that KPMG Cyprus will continue its journey with a focus on growth and the introduction of new innovative services.

“We are upgrading the way we deliver existing services by incorporating technology and introducing innovative new services that meet the needs of our clients and the market,” he specifically stated.

Speaking more broadly about the sector, he explained that it is closely linked to the revised model of the Cypriot economy, adding, “We are adapting and innovating to meet the demands of this model.”

At the same time, he expressed the view that, to ensure sustained growth, Cyprus must focus on strengthening innovation and technology, productivity, and sector diversification, while maintaining fiscal discipline and implementing adaptive strategies.

Mergers and acquisitions, trend expected to intensify

Regarding the trend of mergers and acquisitions, he mentioned that it is expected to intensify as businesses seek to strengthen their market position and secure financial viability through strategic partnerships.

How do you expect the Cypriot economy to perform in the coming year? How optimistic are you about its prospects?

The Cypriot economy appears to have positive prospects for 2025, with an estimated growth rate of around 2.8%, making it one of the fastest-growing economies in Europe. The forecasts are supported by the continued resilience of the economic system, the development of traditional sectors, and the steady increase in international investments and productivity.

Fiscal stability and continuous adaptation to international developments are factors that bolster optimism. However, prudent fiscal policy must be maintained, and external challenges must be properly addressed.

What do you see as the biggest threats to our country’s economy? What should be prioritised to ensure its continued growth?

The greatest risks to the Cypriot economy are external pressures, geopolitical tensions, and changes in the global economic landscape. Specifically, the high energy costs in Europe and uncertainties in global trade relations could negatively impact Cyprus’s economy.

To ensure sustained growth, the country should focus on strengthening innovation and technology, boosting productivity, and diversifying its economic sectors, while maintaining fiscal discipline and implementing adaptive strategies.

What should Cyprus do to become an even more attractive destination for foreign investments? And how important do you consider them for the economy?

Cyprus can enhance its attractiveness for foreign investments by further improving its technological infrastructure and integrating innovative practices in the service sector as well as in the evaluation and licensing of major projects.

Reforms in the taxation sector, improvement of business infrastructure, and strengthening diplomatic relations with key international partners are crucial for maintaining competitiveness. Foreign investments are vital for Cyprus’s economy as they drive growth, create jobs, and strengthen the country’s position in the global market.

Significant changes in professional services

Regarding your company’s sector, how do you expect things to evolve in 2025? Are there any issues you are concerned about?

The professional services sector is expected to continue facing challenges stemming from international developments, particularly the rising energy costs and shifting consumer needs.

Our sector is closely linked to the revised model of the Cypriot economy, and we are adapting and innovating to meet the demands of this new model. We are implementing innovative, technologically advanced services that cater to our clients' evolving requirements.

Through the quality, expertise, and experience of our people, we are moving forward with our vision of being the clear choice for our clients.

What are the major trends/changes you expect in your field, and what are the key challenges?

Our sector is expected to undergo significant changes due to the increasing demand for technological upgrades and innovation, the ever-growing regulatory environment, and the sharp rise in the cost of service delivery.

Mergers and acquisitions trend intensifies

A strong trend in Cypriot business seems to be mergers and acquisitions. Will we see this trend affecting your sector as well?

The trend of mergers and acquisitions is expected to intensify as businesses strive to strengthen their market position and ensure financial sustainability through strategic partnerships.

We are actively involved in several such projects in sectors including renewable energy, hospitality, healthcare, and others. The gradual increase in foreign investors’ confidence in the country has significantly contributed to these developments.

It is crucial for everyone to act in ways that not only maintain but also elevate this confidence in the eyes of investors.

What can we expect regarding your organisation’s development plans and strategy for 2025? What actions do you intend to take in this direction?

KPMG Cyprus will continue its path of growth, focusing on innovation and the introduction of new services. By investing in technology and continually upgrading our services, we remain fully aligned with the evolving needs of businesses.

We are enhancing the delivery of existing services by incorporating technology and introducing innovative new services that meet the needs of our clients and the market. Flexibility and accountability are the core principles guiding our strategy.

Our goal remains to be the clear choice for our people, clients, and society, maintaining our leadership position while creating a better and more sustainable future for all.