The next government and the political system should set a long-term plan, a long-term macroeconomic plan that will turn Cyprus into a triple A country, Finance Minister Constantinos Petrides said in his address to the Annual General Meeting of Invest Cyprus, adding that there is no room for populism in this effort.
Petrides referred to the importance of a consistent public debt reduction programme, stating that it is very important to have the confidence of the markets and the investor in the new era we are living in.
Further, the Minister said that Cyprus in this new era is upgraded with 11 consecutive upgrades of its economy, one of the highest growth rates in the EU, unemployment at historic lows, real, sustainable investment, public debt at a sustainable level which continues to decline.
He added that Cyprus has for the first time a real growth model, "Vision 2035", that can respond to the new era, a realistic, pragmatic, detailed, well thought out plan.
He also noted that in this new era public finances will start to be much more important than in the previous decade, not only because of the lack of cheap money, but also because of market reactions. Cyprus, he noted, is the only country that got an upgrade in the last year because it reduced its public debt.
Outlining the new era for the global economy, the finance minister said it will be an era of inflation, marking the end of cheap money and cheap energy on which the prosperity of European countries was built. In the new era, he added, globalisation ends and regionalisation begins because the concentration of production must be as close to the citizen as possible, and national policies will play a greater role than they used to.
Referring to the decade of the present government, the Minister noted that when the crisis started in the early part of the decade, Cyprus' economy was an experiment even for the EU and it was considered very likely in EU, European Central Bank and International Monetary Fund circles that Cyprus might not be able to stand as a member of the EU or the Eurozone. He added that he knows this because he lived through it.
He added that during these 10 years the Cyprus economy has changed, diversified its model, got on a sustainable path, achieved growth rates that many did not think it could achieve.
Referring to the role of Invest Cyprus, he stressed that it is now an organization with very good management, specialization, more resources that is called upon to play the difficult role of attracting investments in the new era. He added that it is important that it is politically embraced by the Government to play its role.
Cyprus in the top 10 countries for investment recovery
Invest Cyprus Board Chairman Eugenios Eugenios said in his speech that in this very challenging international environment, Cyprus has managed to attract significant investments in all three priority sectors of Invest Cyprus.
Specifically, he said, in the axis of attracting specialised and talented companies with dozens of international companies and thousands of employees mainly in the technology sector.
Also in the axis of attracting investments in priority sectors, significant foreign investments were recorded, including investments related to green and digital transition
He added that in the axis of attracting regulated companies in the financial sector, the number and value of investment funds increased significantly.
He described as significant the recent decision of the ANIMA Investment Network to create the Euromed Tech Hub in Cyprus. An organisation jointly owned by Invest Cyprus and ANIMA, whose all efforts will be focused on promoting technology and innovation solutions that will serve the social and ecological transition of the Mediterranean countries.
"The success of our efforts and the overall investment attractiveness of Cyprus is also recognised by reputable institutions abroad," Eugeniou noted.
Indicatively, he said, according to the Greenfield FDI Performance Index, in 2021 Cyprus made a jump of 50 positions, rising to 18th place internationally. He added that Cyprus is among the top 10 countries for post-pandemic investment recovery with a 150% increase in the first half of 2022 compared to the same period in 2019.
According to FDI Intelligence, he added, there was a significant 600% increase in investment in the technology sector in the first half of 2022 compared to 2019.
He also said that the development of the technology sector is of particular importance for Cyprus. In 2021, he said, the ICT sector's contribution to the economy was €1.9 billion, while in 2022 it is estimated to be close to €3 billion. In addition, he noted, the growth of the sector contributes to the diversification of the country's economic model and the reduction of the trade deficit.
"Indeed, despite the crisis, the Cypriot economy is showing remarkable resilience as it is recording high growth rates with a simultaneous reduction in public debt and ratings agency upgrades. In his presentation, Invest Cyprus CEO George Campanellas said that compared to 2020, the number of foreign technology companies has increased by 49%, the number of employees by 78%, while the direct and indirect economic impact amounts to €3 billion.
In his presentation, Invest Cyprus CEO George Campanellas said that compared to 2020, the number of foreign technology companies has increased by 49%, the number of employees by 78%, while the direct and indirect economic impact amounts to €3 billion.
Regarding the attraction of foreign investment to create new projects in various sectors such as health, education, hospitality and renewable energy, he said there are daily tangible examples and these investments are progressing.
In the area of investment funds, he added, there has been a 23% increase in funds under management and 17% in the number of companies, while six international film productions are currently taking place for a total of €22 million.
The Director General of the Agency said that the strategy for the coming year remains to aim for Cyprus to become an international business and technology hub, to promote foreign direct investment in a number of sectors, incentives for film productions and a focus on investment funds and asset management companies.
At the ceremony Invest Cyprus awarded former Invest Cyprus Chairman Yiannis Matsis.
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