Referring to the new crisis that arose after the Russian invasion of Ukraine, combined with the health crisis that preceded it, as well as the inflationary trends and energy implications that were created, president Anastasiades said “I want you to feel safe” as it is a crisis “that we are dealing with, just like the previous ones, with the same seriousness and responsibility”.

Furthermore, the president explained that the diversification of Cyprus’ development model will be of decisive importance in terms of the management of the current crisis, as it focuses specifically on the utilisation of important sectors for the development of the economy, including university education, shipping, tourism, high technology, research and innovation and renewable energy sources.

“I feel really proud that as a result of the above, we are handing over to the incoming president a very different situation than what we had before us when we took power,” he said, referring to “a healthy and robust economy, despite the three crises”.

He explained that his assertions are backed up by international rating agencies, European institutions and relevant statistical data. The president underlined the positive course of the economy, with the growth rate expected to reach 6 per cent in 2022. “This demonstrates both the resilience and the development prospects of the economy”, he said. In addition, he noted the return to surpluses after the deficit years of the pandemic that preceded it, stating that for 2023 a surplus of €460 million is forecast, which corresponds to 1.7 per cent of Cyprus’ GDP.

He also highlighted the decline of public debt to 89.3 per cent of GDP this year and predicted a further decrease to 83.3 per cent in 2023.

As for unemployment, the president noted that it has decreased to 7 per cent, while a further decrease is expected in 2023, where forecasts place unemployment at 6.4 per cent, before falling further to 5 per cent in 2025, reflecting conditions of full employment. What is more, the president highlighted the continuous upgrading of the long-term and short-term creditworthiness of Cyprus by the international rating agencies. “Just yesterday a new report was announced, where, together with the previous reports by other rating agencies, the reliability and the creditworthiness of the Cypriot economy and the validity of the current fiscal policy were reaffirmed”, he noted.

He also said that during the pandemic, a series of measures amounting to €3.2 billion were implemented in order to support workers, businesses and vulnerable groups.

For 2023, the president reported that, due to a more socially-oriented fiscal policy, an increased budget of €520 million was submitted, compared to 2022, with increased development spending by 12 per cent. President Anastasiades focused heavily on the policies taken to transform Cyprus into a sustainable business and commercial centre in the Mediterranean region. He referred to the package of attractive tax and other incentives, which was further bolstered by the new national strategy for attracting businesses to operate or expand business activities in Cyprus. He noted that already, as a result of the implementation of this strategy, Cyprus rose from number 68 in the Greenfield FDI Performance Index to number 18. The index records the performance of countries in terms of attracting foreign investment, with Cyprus marking the largest increase of all countries.

Moreover, he underlined that in the first half of 2022, foreign direct investments in Cyprus increased by 60 per cent compared to pre-pandemic levels, while investments in software development and other IT sector activities increased by an impressive 600 per cent compared to 2019. “This confirms the success of the business attraction programme and our efforts to promote the country as an emerging technology hub”, he said.

Referring to the ‘Cyprus Tomorrow’ plan, the president described it “as the government’s bequest for a modern European state, to all citizens”. He noted that the plan includes 58 reform and 75 investment actions which constitute the largest reform and development intervention since the establishment of the Republic of Cyprus. In addition, he reiterated that there is a plan to raise an amount of €4.4. billion for the period 2021–2026, while it is expected to add an additional 7 per cent to GDP, while creating 11,000 well-paid jobs.

Furthermore, the president said that the plan’s investments and reforms envisage strengthening the primary and secondary sectors of the economy and therefore expanding the production base, improving competitiveness and the business environment, through digital transformation, speeding up licensing procedures and providing incentives, aiming to support start-ups and innovative units, as well as diversifying and further promoting Cyprus’ tourism product.

“I am really proud, because despite the multiple challenges we have faced, in two months we will deliver an economy built on solid foundations and a state apparatus ready to respond to any unforeseen crises,” Anastasiades concluded.

Source: Cyprus Mail