It was with great pleasure that I accepted, once again, the invitation to address the annual General Assembly of the Cyprus Chamber of Commerce and Industry, which this year has an anniversary character, as it coincides with the 95th anniversary of the establishment of the Chamber.
A journey full of achievements and contribution, which has been inextricably linked to the social and economic development of our country.
As a result of the constructive initiatives, creative activity, dynamism and foresight of the respective management and members of the Chamber, the KEBE has undoubtedly proved to be a valuable and reliable supporter of the State.
This is confirmed, among other things, by the contribution of its members to the reactivation of industry and business after the 1974 Turkish invasion, the successful recovery from the economic crisis and the management of the coronavirus pandemic.
It is for this reason that I personally wish to express my grateful thanks for the close cooperation we developed during my ten-year tenure as President of the Republic.
A cooperation that was based on the common good of the members of the business community, the workers and our country at large.
The Russian invasion of Ukraine, combined with the health crisis that preceded it and the inflationary trends and energy implications that inevitably arise, undoubtedly present the global community with a new crisis.
A crisis that we are facing, just like the previous ones, with the same seriousness and responsibility as we faced the 2013 crisis and the pandemic crisis and therefore I want you to feel safe and the same seriousness and responsibility, I have no doubt, will be followed by the next President, the next Government.
And I have no doubt that the diversification of the development model that we have adopted in previous years will be decisive in the management of the current crisis as well.
A diversification that focused on the utilization of the sectors of university education, shipping, tourism, high technology, research and innovation and renewable energy sources, which are important for the development of the economy.
Equally targeted has been the implementation of reforms and innovative approaches to the very functioning of the state and its structures, to which I will refer at length next Thursday during a presentation I will make and therefore avoid repeating myself.
And I feel really proud, as, as a result of the above, we are handing over to the incoming President of the Republic a very different set of facts from what we had before us when we took power.
We are delivering a healthy and robust economy, despite the three crises we have experienced and are still experiencing.
And what I mention would be considered fine words if they were not confirmed by international rating agencies, European institutions and documented relevant statistics.
Statistics and reports that, among other things, record. It should be noted that a surplus of €460 million is forecast for 2023, corresponding to 1.7% of GDP.
- The fall in public debt to 89.3% this year and 83.3% in 2023, not to mention further indications of how much it will fall by 2025.
- The reduction of the unemployment rate to 7% of the labour force in 2022, with a further reduction in 2023 to 6.4%, to reach 5% in 2025, i.e. in full employment conditions.
- The continuous upgrading of Cyprus' long-term and short-term credit rating by the international rating agencies. Just yesterday a new report was announced by an agency that once again confirms the reliability, the creditworthiness of the Cypriot economy and the correct path of fiscal policy.
It is as a result of the sound economic management that we followed that we succeeded during the period of the pandemic to support both workers and businesses, but also the vulnerable groups of the population.
And I would like to point out, for the sake of reference only, that the series of measures we have implemented to this end involves an amount of EUR 3.2 billion, without of course ignoring the amount of more than EUR 400 million relating to a whole range of other support measures for the current crisis.
It is the same conscious fiscal policy that allowed us to present for 2023 an increased budget of EUR 520 million compared to 2022, with an increased development expenditure of 12%.
In addition to this, I would like to underline that an equally important objective is to further strengthen the policies implemented so far to transform Cyprus into a sustainable business, commercial centre of the Mediterranean.
In this context, the package of attractive tax and other incentives is significantly enhanced by the new national strategy for attracting companies to operate or expand business activities in Cyprus.
Already, as a result of the implementation of this strategy, Cyprus has moved from 68th place to 18th in the Greenfield FDI Performance Index, which records the performance of countries in attracting foreign investment, the highest increase among all other countries.
It is also worth mentioning that in the first half of 2022:
- Foreign direct investment increased in Cyprus by 60% compared to pre-pandemic levels.
- Software and information technology (IT) investment increased by an impressive 600% compared to 2019 which confirms the success of the "Business Attraction Programme" and the promotion of the country as an emerging technology hub.
Through the plans and results, as I have mentioned, we have laid the foundations for achieving sustainable economic and social development.
It has been our goal from the very beginning of our governance to build a state that meets and serves the needs of its citizens.
This very dynamic that we have created is reinforced by the perspectives and plans that we have included in the Plan "Cyprus-Tomorrow".
A plan which is the biggest reform and development intervention since the establishment of the Republic of Cyprus, as the Government's legacy for a modern European state for all citizens, every Cypriot and every Cypriot.
Specifically, the Plan includes 58 reform and 75 investment actions that constitute the largest reform and development intervention since the establishment of the Republic of Cyprus.4. billion for the period 2021 - 2026, and is expected to add an additional 7% to the Gross Domestic Product, while creating 11 thousand well-paid jobs.
I will not go into an analysis of what each of the pillars of the Plan entails.
I will content myself with a reference to the investments and reforms designed to make the economy more resilient and competitive, but indicative of the importance of the Plan in consolidating what we have achieved.
These investments and reforms, inter alia, provide for:
- Strengthening the primary and secondary sectors of the economy and thereby broadening the productive base.
- Improving competitiveness and the business environment, through digital transformation, speeding up licensing procedures and providing incentives, aiming at:
- Supporting start-up and innovative units.
- Diversifying and further promoting the tourism product.
- Diversifying and further promoting the tourism product.
I am really proud, because despite the multiple challenges we faced, in two months we will deliver an economy built on solid foundations and a state mechanism ready to respond to any unforeseen crises.
In conclusion, I would like once again to express my grateful thanks and congratulations and praise the work of the Cyprus Chamber of Commerce and Industry.
I have no doubt that through your dedication in carrying out your mission, even more dynamic policies, even more dynamic continuation will follow.
(PM/MB)
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