2020 Cyprus Country Report

Economy
The challenges of maintaining
economic prosperity in a
Covid-impacted world is a key
inflection point for countries
and requires really significant
changes in the way governments
and businesses will need to adapt. The rate of
digital transformation has never been higher and
will be maintained. EY will invest substantially
in our strategic advisory capabilities in Cyprus
and we will look to attract the best and most
diverse talent into our Firm to help our clients
thrive amidst all the current uncertainties.
David Barker
Country Managing Partner
EY Cyprus
Exports of goods by economic destination
in 2019 €/million (includes re-exports)
Transport
equipment
1,018
Machinery &
electrical equipment
239
Mineral
products
666 Chemicals
405
Base metals
& products
95
Vegetable
products
78
Live animals
& products
270
Unclassified
78
It is no secret that Cyprus’
economic activity in 2020 has
been significantly affected as a
result of the global outbreak of
Covid-19 and the confinement
measures that followed.
Even though Cyprus’ performance in containing
the spread of the virus has been remarkable,
the contraction of the economy is expected to
be over 7% of the GDP. The outlook for 2021
is quite encouraging though, with growth
rates that are expected to be between 5-6%
of GDP. Various reforms are already under
way, while the country has embarked on an
ambitious programme of digital transformation
that will increase further its efficiency and its
international competitiveness as an established
business and services centre in the area.
Source: Cystat
Netherlands
Food, beverages
& tobacco
135
Libya
Other
171
TOTAL EXPORTS
3,146
Top export markets for goods in
2019 €/million (includes re-exports)
Greece
United Kingdom
Hong Kong
Marshall Islands
Christodoulos Angastiniotis
President
Cyprus Chamber of Commerce and Industry (CCCI)
The main question for the
economy in the next 12 months
is whether the legendary
resilience of the Cyprus economy
will prevail. There are some
signs of life outside tourism,
but this will not prevent negative growth rates
in 2021. I am currently forecasting a real GDP
contraction of 5.0% in 2020 and growth of 1.8%
in 2021 but with the caveat that all forecasts
are subject to more uncertainty than usual.
Fiona Mullen
Director
Sapienta Economics
406 315 235 189 81 71
Top suppliers of goods in 2019 €/million
Source: Cystat
UK 588
Germany 496
Italy 844
Greece 1,669 Israel 489
Source: Cystat
China 412
24 Country Report CYPRUS 2020