Finance Minister Outlines Cyprus’ Economic Enrichment Strategy
At the forefront of Cyprus’ economic future, Finance Minister Makis Keravnos highlighted the critical need for economic diversification during his address at the 14th Nicosia Economic Conference. Keravnos underscored the government’s commitment to maintaining investment levels as a cornerstone of its economic policy.
With an eye on sustainable development, Keravnos pointed out the necessity of evolving beyond short-term gains. “The enrichment of our economic model must be governed by a balanced economic development policy,” he stated, advocating for growth that encompasses both innovative and traditional sectors like agriculture and animal husbandry.
Creating synergies and adopting modern production methods, particularly those aimed at exports, are on the minister’s agenda. Keravnos emphasized the government’s plan to foster conditions conducive to joint investments by Cypriots and foreign investors, focusing on infrastructure, new production units, and job creation.
While nurturing new sectors based on comparative advantages, support for traditional economic pillars such as tourism and professional services remains a priority, with a strong push towards enhancing their competitiveness.
Keravnos revealed targeted measures to position Cyprus as an attractive hub for international companies and investment funds, with strategic investments in renewable energy, health, and education. The Business Facilitation Unit (BFU) plays a key role in this strategy, streamlining processes to attract investment and talent.
The government’s commitment extends to public service reform, improving the national health scheme, and ensuring an efficient justice system. Tax reform is also on the horizon, aiming for a system that encourages business while being socially equitable and reducing tax evasion.
Despite challenges such as transitioning to a green and digital economy and addressing labour market distortions, Keravnos remains optimistic. He forecasts inflation to decrease to around 2.5 percent by 2024, with public debt projected to fall to 60 percent of GDP by 2026. His optimism is rooted in the belief that success lies in steadfast adherence to a prudent economic policy that eschews short-term populism in favor of long-term stability for citizens and investors alike.
