How to develop the Cypriot economy through the eyes of businesses... Their demands and proposals

The role of the new generation of entrepreneurs is increasingly emerging as a catalytic factor in building an economy that balances growth with social and environmental responsibility.

As part of the 15th Nicosia Economic Congress, young leaders from major organisations shared their views in a meaningful dialogue with the Deputy Minister to the President, Irene Piki.

Piki said that the biggest challenge for the economy is to maintain its positive course and the transition to a knowledge-based society.

She said the government wishes for young people with experience from abroad to return to Cyprus, adding that next month, tax and other incentives will be announced to this end.

Piki also noted that Cyprus’ economy has one of the highest growth rates in Europe and has achieved a significant reduction of its public debt and unemployment rate.

The technology sector, she said, contributes 14% to the country’s gross domestic product (GDP), while together with education they reach 20%, which, as she said, reflects the significant diversification of the productive base.

In terms of challenges, the government official cited the changing geopolitical environment and global economy, adding that any decisions must be made with extreme caution.

Piki also said that reducing energy costs is important for improving competitiveness, as is reducing bureaucracy and the digitalisation of the public sector, adding that the Business Service Centre is expected to be operational next month.

General Manager of Nicosia Mall George Georgiou said the Cyprus economy was currently on a positive trajectory, however, attention must be given to maintaining and improving.

He also said that the government should find ways to ensure that the top management positions of state organisations are manned by the right people and that proper assessments are carried out throughout the public sector.

Nearchos Petrides, CEO of Ellinas Finance, said that the world today requires better education and more experience. He added that financial institutions must find solutions and ways to help the middle class together with the government. Referring to the tax reform, he said that while a good start has been made for companies, changes are needed for individuals as well.

Chryso Tsokkos, Director of A. Tsokkos Hotels, said that it is important that Cypriot businesses form the foundation of the Cypriot economy. Referring to tourism in specific, she said it has proven to be resilient with benefits for the entire economy, though seasonality is the biggest challenge. She suggested that the primary objective should be to extend the tourist season to nine-10 months.

Responding to the voiced concerns, Piki said that many of these are being addressed with actions included in the government’s "Vision 2035" strategy, and implemented through the Recovery and Resilience Fund, but also through the governance programme.

She referred to the recent visit of a Cypriot delegation to the US, headed by President Nikos Christodoulides, and noted that the first question asked by the major technology companies was what kind of employees they could hire in Cyprus.