Despite the challenges that the global economy is facing, the Cypriot economy continues to demonstrate strong growth rates, President of Cyprus Nikos Christodoulides said Friday, addressing an 'Invest Cyprus' side event, at the Delphi Economic Forum, in Greece.
President Christodoulides assured that the government will continue working tirelessly, in order to create an enabling environment for businesses to thrive.
"In 2021 and 2022 we experienced 6.6% and 5.6% growth rates respectively, one of the highest in the EU, while maintaining low unemployment rates. The forecast for 2023 and the years to come are also very positive, lower but still positive," he pointed out.
The government, he added, has developed a long-term strategic plan for the economy - Vision2035 - aiming to promote entrepreneurship and innovation, and attract investment in high-growth sectors such as tourism, shipping, and energy.
As regards the shipping sector, he noted that the country has invested heavily in expanding and upgrading its port facilities, with the Port of Limassol being the largest and most important port in the country. The sector, he continued, benefits from a competitive tax system, while developing its position in the maritime technology sector, offering opportunities for investment in areas such as ship management software, cybersecurity, and drone technology for maritime surveillance.
Cyprus's tourism sector is one of the fastest-growing in the Mediterranean, while the energy sector is also growing, with the discovery of significant offshore gas reserves, presenting opportunities for investment in infrastructure and services, he pointed out.
"The Russian invasion in Ukraine has put at the forefront in the EU the need for energy independence and diversification, and Cyprus can play an important part in these efforts of the EU," President Christodoulides said.
He added that the financial services sector is also experiencing growth, driven by the implementation of new regulations and the introduction of new financial products and services. The government has also launched initiatives to promote fintech and, making Cyprus a regional hub for research and innovation, he went on to say.
"Our Government took office very recently in March 2023 and has already set in motion an ambitious Governance programme with bold reforms, aiming to broaden the productive base of the economy, fully capitalizing on research and technology and utilizing our country's rich human talent".
Cyprus, he noted, fully endorses the long-term economic strategy 'Vision2035', setting a roadmap for the country's development and growth over the next decade.
"Amongst our highest priorities is the promotion of a comprehensive tax reform, aiming at the reduction of administrative burden for tax payers and businesses, while retaining the system's attractiveness," he stressed.
President Christodoulides said that Cyprus is fully committed to the EU's Green Deal, adding that it they focus particularly on subsidizing green initiatives and further promoting the use of Renewable Energy Sources in the country's energy mix, including through RES storage infrastructure.
"We also promote a number of actions for ensuring a swift digital transition, while enhancing the country's capacity in maintaining a favorable business environment, more simplified and with less red tape".
President Christodoulides also referred to the Cyprus' foreign policy, saying that "we have worked methodically during the last years in building strong ties both with countries in the wider Eastern Mediterranean, the Middle East and the Gulf, as well as with the United States, where there have been leaps of progress in building a truly strategic partnership".
"I am personally committed, the Government is committed in taking all necessary action to protect the reputation of Cyprus as a credible business and investment centre. We are working tirelessly on not only fully investigating but also establishing a strong supervisory framework, including the establishment of a fully-fledged National Sanctions Implementation Unit, with technical support by the UK Government" he stressed.
In recent years, the President noted, Cyprus has taken significant steps to enhance its AML regulations and strengthen its supervisory framework.
Furthermore, he said that the Central Bank of Cyprus has been actively working to reduce the number of non-resident deposits in Cypriot banks, particularly those from high-risk jurisdictions.
Concluding, he noted the significant progress of the Cyprus economy, with strong GDP growth, improved public finances, and declining unemployment rates. The country offers investors attractive opportunities across several sectors and a friendly business environment, he said.
On the sidelines of the Delphi Forum, the President had a bilateral meeting with the President of Bulgaria, as well as with the US Ambassadors to Greece and Cyprus.
Source: Cyprus News Agency