Introduction
The Cyprus Economy and Competitiveness Council has published the Cyprus Competitiveness Report 2025, highlighting the importance of attracting investments that generate economic activity, create jobs and contribute to the transfer of knowledge and expertise. According to the report, competitiveness should be assessed not only through growth indicators but also through the economy’s ability to deliver long-term prosperity.
Redefining Competitiveness For Sustainable Prosperity
Sofronis Clerides, professor of economics at the University of Cyprus and head of the research team behind the report, said competitiveness is increasingly linked to the capacity to generate sustainable prosperity. Beyond economic performance and a favorable business environment, the report points to the importance of social and environmental factors in supporting long-term development.
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Productivity And The Role Of ICT
Productivity remains one of Cyprus’ main structural challenges, despite relatively low unemployment and a continued inflow of skilled workers. Among the sectors examined, information and communication technologies (ICT) emerged as a notable exception. Strong performance and signs of productivity gains have positioned the industry as an important contributor to economic value creation.
Strategic Priorities And Vision 2035
Drawing comparisons with countries including Greece, Malta, Israel and several European economies, the report identifies three priorities: improving productivity, creating conditions that support business growth and scalability, and strengthening the state’s ability to implement reforms. Researchers also emphasized the need to maintain and regularly update Vision 2035, proposing the establishment of a dedicated implementation mechanism capable of ensuring continuity beyond electoral cycles.
Investment Quality And Local Integration
Speaking during the report’s presentation in Nicosia, Council Vice-President George Syrichas stressed that the quality of investment matters as much as the volume of capital entering the country. According to Syrichas, investments that generate employment, develop local expertise and strengthen links with the domestic economy deliver greater benefits than transactions limited to asset transfers.
Challenges And Opportunities
High electricity prices and delays in the green transition were identified as major challenges for competitiveness. At the same time, Syrichas noted that Cyprus’ climate provides favorable conditions for expanding renewable energy production. Human capital was highlighted as another area requiring attention. The report points to weaknesses in educational outcomes, skills mismatches and limited cooperation between academia and industry. Greater emphasis on practical and laboratory-based training was recommended to better align education with labor market needs.
Policy Coordination And Long-Term Planning
Another issue identified in the report concerns fragmentation in public policy implementation across areas such as justice, energy and infrastructure. Council President Demetris Georgiades and other participants argued in favor of a more coordinated approach to strategic planning to improve continuity in long-term initiatives, including Vision 2035.
Conclusion
Findings contained in the Cyprus Competitiveness Report 2025 outline several structural challenges facing the economy, while also highlighting areas with growth potential. Productive investment, improvements in productivity and effective policy implementation were identified as key factors supporting the country’s long-term competitiveness.
