Major changes will have to be made to the development model of the Cypriot economy in the coming years to win the challenge of stable and long-term growth in an increasingly competitive environment, according to an in-depth study by private consultancy firm EPOQ Partners on behalf of ruling Disy party.
This was presented at a working dinner focusing on the Cyprus 2030 vision and development agenda during the recent visit to Cyprus of Greece’s New Democracy leader Kyriacos Mitsotakis.
The study provides a roadmap and milestones for the development of each sector of the Cyprus economy. Specifically, it puts forward the underutilised capacity of infrastructure and the potential of Cyprus to harness growth with a technology-driven economy.
The study also points out that Cyprus may be a small economy but should target specific sectors to achieve economies of scale. This means that the Mediterranean island will have to escape the growth of the Public Service rationale and focus on technological developments instead.
If Cyprus does want to have a present and a future it cannot base its growth on the expansion of the state mechanism because this is not development, said the consultancy firm. The study then showed that there were 60,600 public employees in Cyprus in 2018 for a population of 860,000. This corresponds to one civil servant for every 14 citizens.
Cyprus, the report noted, should therefore invest in areas such as education so as to become a regional training center, in medical tourism, professional services, private banking, digital technology, as well as in sustainable energy research.
The consultancy firm also referred to the economic and institutional advantages of Cyprus such as the high educational level of its citizens, the possibility of becoming an energy hub for the region, exceptional infrastructure in tourism, the adoption of the EU’s public and financial rules.
Special reference was also made to high-end investments such as in Artificial Intelligence, Blockchain Services, and IT – a sector that should be developed further.