Cyprus should strive for a more resilient economic model, experts say

Economic stakeholders this week convened at this year’s annual Economist Conference in Cyprus to explore the need for revitalising the country’s development model and strategise ways to address challenges while harnessing opportunities for a sustainable and innovative future.

President of the Cyprus Chamber of Commerce and Industry (Keve), Christodoulos Angastiniotis, addressed the ongoing regional conflict and its potential impacts on Cyprus.

He emphasised the uncertain repercussions on investments, tourism, and real estate markets from Israelis, highlighting the need for adaptation to potential inflation due to high international oil prices.

Despite challenges, Agastiniotis saw opportunities, such as the potential relocation of Israeli companies and families to Cyprus for security reasons. This could benefit sectors like housing, education, and more.

The Keve president stressed the necessity for Cyprus to adjust its economic model in the face of challenges, advocating for reforms, digital transformation promotion, and the exploration of new sectors.

Despite challenges, Angastiniotis expressed confidence that with the EU Recovery and Resilience Plan, Cyprus could modernise its economic model for long-term growth.

Andreas Yiasemides, President of the Cyprus Investment Funds Association (CIFA), emphasised the pivotal role of the investment capital sector in reshaping Cyprus’ economic future.

Yiasemides acknowledged the global geopolitical instability and pandemic repercussions on Cyprus, emphasising the need for a shift towards a resilient economic model capable of withstanding external shocks.

Yiasemides highlighted the significant resilience demonstrated by the investment capital sector in Cyprus, with over €3 billion already invested in the local economy from a total of approximately €11 billion.

He underscored the importance of creating a resilient and sustainable path to tackle challenges posed by rising interest rates and inflation.

The Managing Director of the Israel National Centre for Blue and Green Growth, Hila Ehrlich, discussed the growing number of startups in Israel’s blue technology sector.

Ehrlich noted their focus on environmental impact and the transition from traditional high-tech areas to entrepreneurship aiming to create positive environmental change.

She highlighted the centre’s efforts in supporting Blue Tech startups with innovative solutions and stressed the importance of sustainable integration of human activity in the maritime sector. Ehrlich emphasised the significance of promoting marine innovation to replace traditional polluting industries and contribute to ocean preservation.

The discussions underscored the collective commitment to shaping a resilient and innovative economic path for Cyprus, leveraging available EU funds and outlining a roadmap for sustainable growth.

The conference concluded with a shared vision for Cyprus to emerge as a hub for innovation and economic resilience in the Mediterranean region.