Cyprus is the 44th most competitive nation in the world out of 140 countries ranked in the 2019 edition of the Global Competitiveness Report published by the World Economic Forum.
But even though it has managed to maintain the same rank as last year, the Cyprus economy also sustained enough negative indicators.
To start with, Cyprus is first among the 140 countries in terms of private debt which amounts to 226% of GDP. The Cyprus economy is also vulnerable when it comes to the high level of non-performing loans which, at the time the data was collected, it exceeded 31.4% of the country’s overall loan portfolio.
At the same time, Cyprus significantly lacks a business innovation culture and is ranked 104th. This negative indicator is also reflected in the low rate of R&D spending which is at 0.5% of GDP – something that the European Commission often points out in its reports. The Commission also pointed out in reports that the cost of setting up a business in Cyprus is significantly high.
But where the Cypriot economy seems to really lag behind is the effective implementation of the legal framework for the settlement of both business and civil disputes, according to the World Economic Forum report. Specifically, Cyprus ranks 87th and it is a vulnerability well known to the authorities which are trying to reform the judiciary for some time now.
Another indicator that continues to be deficient is that of critical thinking in the country’s educational system which is ranked 74th. At the same time, Cyprus ranks 58th in terms of using high technology and IT systems in business.
As for positive indicators, Cyprus ranks 35th when it comes to the workforce’s high-standard training. And its health sector is scored very highly – 96 out of 100 and ranked 13th.