2020 Cyprus Country Report
The 2020 Cyprus Country Report features in-depth articles on the economy, foreign direct investment, international trade and headquartering as well as detailed sector profiles and insights from Cyprus’ 100 most influential political, economic and business leaders shaping the future of their country and its industries.
The 2020 Cyprus Country Report features in-depth articles on the economy, foreign direct investment, international trade and headquartering as well as detailed sector profiles and insights from Cyprus’ 100 most influential political, economic and business leaders shaping the future of their country and its industries.
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Economy<br />
The challenges of maintaining<br />
economic prosperity in a<br />
Covid-impacted world is a key<br />
inflection point for countries<br />
and requires really significant<br />
changes in the way governments<br />
and businesses will need to adapt. The rate of<br />
digital transformation has never been higher and<br />
will be maintained. EY will invest substantially<br />
in our strategic advisory capabilities in <strong>Cyprus</strong><br />
and we will look to attract the best and most<br />
diverse talent into our Firm to help our clients<br />
thrive amidst all the current uncertainties.<br />
David Barker<br />
<strong>Country</strong> Managing Partner<br />
EY <strong>Cyprus</strong><br />
Exports of goods by economic destination<br />
in 2019 €/million (includes re-exports)<br />
Transport<br />
equipment<br />
1,018<br />
Machinery &<br />
electrical equipment<br />
239<br />
Mineral<br />
products<br />
666 Chemicals<br />
405<br />
Base metals<br />
& products<br />
95<br />
Vegetable<br />
products<br />
78<br />
Live animals<br />
& products<br />
270<br />
Unclassified<br />
78<br />
It is no secret that <strong>Cyprus</strong>’<br />
economic activity in <strong>2020</strong> has<br />
been significantly affected as a<br />
result of the global outbreak of<br />
Covid-19 and the confinement<br />
measures that followed.<br />
Even though <strong>Cyprus</strong>’ performance in containing<br />
the spread of the virus has been remarkable,<br />
the contraction of the economy is expected to<br />
be over 7% of the GDP. The outlook for 2021<br />
is quite encouraging though, with growth<br />
rates that are expected to be between 5-6%<br />
of GDP. Various reforms are already under<br />
way, while the country has embarked on an<br />
ambitious programme of digital transformation<br />
that will increase further its efficiency and its<br />
international competitiveness as an established<br />
business and services centre in the area.<br />
Source: Cystat<br />
Netherlands<br />
Food, beverages<br />
& tobacco<br />
135<br />
Libya<br />
Other<br />
171<br />
TOTAL EXPORTS<br />
3,146<br />
Top export markets for goods in<br />
2019 €/million (includes re-exports)<br />
Greece<br />
United Kingdom<br />
Hong Kong<br />
Marshall Islands<br />
Christodoulos Angastiniotis<br />
President<br />
<strong>Cyprus</strong> Chamber of Commerce and Industry (CCCI)<br />
The main question for the<br />
economy in the next 12 months<br />
is whether the legendary<br />
resilience of the <strong>Cyprus</strong> economy<br />
will prevail. There are some<br />
signs of life outside tourism,<br />
but this will not prevent negative growth rates<br />
in 2021. I am currently forecasting a real GDP<br />
contraction of 5.0% in <strong>2020</strong> and growth of 1.8%<br />
in 2021 but with the caveat that all forecasts<br />
are subject to more uncertainty than usual.<br />
Fiona Mullen<br />
Director<br />
Sapienta Economics<br />
406 315 235 189 81 71<br />
Top suppliers of goods in 2019 €/million<br />
Source: Cystat<br />
UK 588<br />
Germany 496<br />
Italy 844<br />
Greece 1,669 Israel 489<br />
Source: Cystat<br />
China 412<br />
24 <strong>Country</strong> <strong>Report</strong> CYPRUS <strong>2020</strong>