The President of the Republic of Cyprus, Nikos Christodoulides, has made significant strides in reshaping the island’s economy. In his annual address for 2024, he provided a comprehensive review of the government’s economic progress and key policy achievements, underscoring the importance of a resilient economy in driving forward the government’s agenda.
“We must ensure that a healthy, strong, and resilient economy is the foundation for all our policies,” President Christodoulides remarked, emphasising that economic stability is crucial for achieving the government’s goals. Let’s dive into the core achievements and forward-looking strategies that are defining Cyprus’ transformation.
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Economic Growth At Record Levels
In 2024, Cyprus achieved a remarkable economic growth rate of 3.4% of GDP, placing it among the top performers in the Eurozone. This strong performance has been a pivotal element in advancing the government’s programme. “We are witnessing one of the highest growth rates in the Eurozone, a clear indicator of the economic vitality that is propelling Cyprus forward,” Christodoulides noted.
Furthermore, Cyprus’ credit rating was upgraded to investment grade A, the first such upgrade in 13 years. This move by international rating agencies reflects growing confidence in the island’s economic stability and responsible governance. “This upgrade is a testament to our responsible economic policy and is translating into tangible benefits for our citizens and businesses.”
Reducing Debt And Creating Jobs
Fiscal responsibility has been a cornerstone of the government’s strategy. Cyprus has significantly reduced its public debt, bringing it closer to the target of 60% of GDP. “By focusing on fiscal responsibility, we have successfully reduced public debt and paved the way for a more sustainable future,” the President affirmed.
The government has also taken strides towards achieving full employment. Unemployment dropped to 4.9%—the lowest rate since 2008—while the employment rate soared towards 80%. “Our goal is to create full employment conditions, ensuring that all Cypriots can contribute to and benefit from the country’s growth.”
Rising Salaries And Strengthened Social Support
One of the government’s most notable achievements is the significant increase in citizens’ earnings. The average salary rose by 13.2%, while social security pensions recorded a 6% increase, the highest in nearly three decades. “We have worked tirelessly to improve the living standards of our people. This increase in wages and pensions is a direct result of our efforts to strengthen the economy,” Christodoulides stated.
Additionally, targeted interventions have supported key sectors. The tourism industry set historic records with more than four million visitors and revenues exceeding €3 billion, while the Cyprus ship registry saw a notable 18% boost.
Key Policies For The Future
Looking forward, the government has introduced several strategic measures aimed at enhancing competitiveness and tackling long-term challenges. These include:
- Tax Reform: Proposals to address the needs of the middle class, the younger generation, and Cypriot businesses. “Tax reform is crucial for fostering an environment that supports competitiveness and addresses critical issues such as housing and low birth rates.”
- Strengthening the Primary Sector: The government has allocated over €100 million to boost the primary sector, particularly agriculture.
- Employment Policies: The introduction of the Blue Card and revisions to third-country employment strategies aim to attract highly qualified talent to Cyprus.
- Research and Entrepreneurship: Increased funding to foster the connection between research and entrepreneurship, ensuring that innovation becomes a driving force for the economy.
Addressing Demographic And Social Challenges
Beyond economic policies, the government has also focused on social welfare, with several initiatives designed to support the demographic agenda. Direct support measures exceeding €760 million were introduced for households and businesses during the pandemic, while demographic policies were given €100 million.
One standout initiative is the expansion of parental leave, which was increased by one month, and the widening of its age limits, offering more benefits for working families. “Supporting families is vital for ensuring that Cyprus remains a thriving society for generations to come,” President Christodoulides commented.
Digital Transformation And Public Sector Modernisation
In 2024, Cyprus took bold steps in modernizing its public sector, embracing digital transformation as a key driver of productivity and transparency. Simplified licensing procedures and the launch of the ‘Digital Citizen’ application have streamlined administrative processes, making interactions with the government more efficient and accessible. “The digital transformation of the state is about more than just reducing bureaucracy—it’s about creating a future-proof, competitive Cyprus.”
Strengthening Cyprus’ International Role
On the international stage, Cyprus continues to solidify its position as a key player in the Mediterranean. Christodoulides highlighted Cyprus’ leadership role in the European Union, its successful assumption of the Presidency of the Mediterranean Member States, and its strengthened defence capabilities, with the government focusing on national security and international partnerships.
“Our goal is to ensure that Cyprus remains a strong, reliable partner on the global stage. Whether in defence, diplomacy, or economic cooperation, we are committed to safeguarding our national interests and contributing to regional stability,” the President affirmed.
A Focus On Sustainability
Cyprus has also pushed forward with its sustainability agenda, with initiatives aimed at enhancing energy efficiency and lowering costs. This includes the installation of smart meters to upgrade the electricity grid and regulatory frameworks to promote renewable energy projects. “We are taking concrete steps towards a greener, more sustainable Cyprus,” said Christodoulides.
Conclusion: A Bright Future Ahead
In conclusion, the past year has been marked by solid economic achievements and strategic policy shifts that position Cyprus for a prosperous future. As Christodoulides aptly put it, “A healthy economy is the foundation for all that we aim to achieve. With a strong economic outlook, we are paving the way for a brighter, more sustainable Cyprus.”
With a comprehensive approach to fiscal management, social support, and international cooperation, Cyprus is on track to become a beacon of stability and growth in the region.
