2020 Cyprus Country Report

Foreword
Without any doubt, the Covid-19 pandemic has caused unprecedented
challenges for all the countries around the globe with severe socio-economic
consequences.
In dealing with this, unfortunately, ongoing crisis, my Government
has been assertive in its decision-making and proactive in providing
medical and economic support to our citizens, workers and enterprises.
Like many other countries, Cyprus had to take harsh, painful, but necessary
measures, in order to deal in a timely and effective manner with this unprecedented
public health crisis.
We immediately acknowledged, however, that, beyond saving lives, we also had to
safeguard livelihoods and address the potential economic and social disruption the
lockdown measures would cause.
We needed to ensure the sustainability of businesses, preserve jobs, maintain
the income of our citizens, protect the rights of workers and provide the necessary
support to our economy to recover as quickly as possible once the lockdown restrictions
would gradually be eased and eventually lifted.
To this end, we adopted one of the most comprehensive fiscal
support packages within the European Union, without risking the
long-term sustainability of public finances. This is due to the fact
that the Cyprus Government accumulated the necessary fiscal surpluses
in the past that could be used in emergency cases such as the
current pandemic crisis.
As regards the economic outlook, following the unavoidable
recession of economic activity in 2020 due to the imposed lockdown
measures, we expect a significant rebound in 2021, with
positive growth rates, drop of unemployment, budget surplus and
a reduced public debt.
Our motto in Cyprus is that with every challenge there is opportunity.
In this regard, the Government’s broader strategy for economic
recovery also includes the implementation of much needed
structural reforms for the further development of key economic
sectors, fully exploiting newly established European mechanisms
such as “SURE” and “Recovery and Resilience Facility”.
Reforms, amongst others, as regards the pension, welfare and
labour market system, the judicial and health care systems, and the sectors of digital
transformation, tourism, research and innovation and green economy.
We will also continue the sound governance of public finances, complemented
by a business-friendly investment environment, moving forward with a comprehensive
government strategy for investment facilitation and fully reforming the public
service so that it facilitates growth in a modern, knowledge-based, scientific, hightech
and innovative economy.
We envisage that the Cyprus economy will be eventually transformed in such a
way, in order to become even more competitive in the global economic stage. It’s up
to us to make this happen and I am certain that we will deliver.
In concluding, I wish to extend my deepest appreciation to the editors and publishers
of the Cyprus Country Report for providing all these years essential insight
on the Cypriot economy and the attractive investment opportunities in our country.
“We adopted
one of the most
comprehensive
fiscal support
packages within
the European
Union, without
risking the
long-term
sustainability of
public finances”
Nicos Anastasiades
President of the Republic of Cyprus
Country Report CYPRUS 2020 11