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13th Nicosia Economic Congress

For the 13th consecutive year, the Nicosia Economic Congress was organized with the aim of outlining the current state of the Cypriot economy and listing its future prospects.

It is one of the most important gatherings where high-ranking executives from all Cypriot businesses, entrepreneurs, economists, academics, ministers and relevant government officials of competent government officials have the opportunity to be informed about current economic issues, ask their questions, as well as develop their own positions and opinions

The 13th Nicosia Economic Congress took take place on Tuesday, 9th May 2023 at the Hilton Nicosia, in the presence of the President of the Republic of Cyprus, Nikos Christodoulides.

The President delivered the keynote speech focusing on his administration’s commitment to economic progress and development, while also acknowledging the challenges that lie ahead.

The president highlighted the need for Cyprus to create an environment that promotes innovation, progress, and prosperity to attract quality investment, entrepreneurship, and a high standard of living for its citizens.

During his recap of recent events, the president noted that the country’s Gross Domestic Product (GDP) increased by 5.6 per cent in 2022 after expanding by 6.6 per cent in 2021.

Moreover, sectors such as tourism, trade, accommodation, and food services showed remarkable growth, alongside the field of information and communication technologies.

Looking ahead, the president recognized the fact that the economic challenges of 2023, as well as the various risks and adverse effects that stem from them, are expected to be somewhat more severe than those of 2022.

Christodoulides stated that they are “in advanced consultations” with some countries and expect to see some “important investments” in the country within 2023.

“Already, we are in contact with some countries, in advanced consultations and we expect, within the coming year, to see some important investments in our country,” he stated.

“This includes an improvement of our relations with the countries of the Middle East, the Eastern Mediterranean and the Gulf, as well as India and Japan, but also in terms of the framework of our new, strategic relationship with the USA,” he added, noting that “by making use of these excellent political relations, we will have some important investments to announce”.

The focus of our strategy is guided through the implementation of the National Recovery and Resilience Plan, a fact that Nikos Christodoulides pointed out during his speech.

The plan aims to promote a more diverse and resilient growth model and improve the business environment.

Moreover, it includes measures and reforms aimed at diversifying the economy, limiting excessive borrowing by the private sector, ensuring the sustainability of public debt in the medium term, and resolving non-performing loans (NPLs) both inside and outside the banking sector.

He noted that the implementation of these measures is vital to correct the weak and vulnerable points of the economy with sustainable actions.

According to the economic impact assessment of the plan, the Cyprus Recovery and Resilience Plan is expected to have a significant macroeconomic impact in the short, medium, and long term.

According to estimates, the plan could lead to a cumulative increase in Cyprus’s GDP of about 3 per cent in the short term and about 7 per cent in the medium term until 2026, compared to the baseline development scenario without its implementation.

In addition, it is expected to significantly increase employment by more than 2.5 per cent, translating to about 11,000 new quality jobs for the period 2021-2026 and about 6 per cent in the long term.

At the same event Mr. Kyriakos Iordanou, the General Manager of the Institute of Certified Public Accountants of Cyprus (ICPAC) and Chairman of the Conference, said that Cyprus needs to adjust to the new conditions and revise its economic model in order to survive in the current environment.

Among the other speakers at this prestigious event were four government ministers, George Papanastasiou (Minister of Energy, Commerce & Industry), Yiannis Panayiotou (Minister of Labour & Social Insurance), Philippos Hadjizacharias (Deputy Minister of Research, Innovation & Digital Policy) and Anna Koukkides-Procopiou (Minister of Justice & Public Order) – as well as Constantinos Herodotou (Governor, Central Bank of Cyprus) and Takis Clerides (President, Economic and Competitiveness Council).

The Congress also included three panel discussions, on issues related to labor market challenges, the digitalization of the Cypriot economy and securing a more efficient and faster delivery of justice.