2022-2023 Cyprus Country Report

CYPRUSCOUNTRY REPORT 2022
Following the country’s financial crisis
in 2013, Cyprus undertook a major
reform agenda and while still facing
some economic challenges, the small
EU nation has demonstrated resilience
and an ability to bounce back to growth.
The year 2015 signalled a sooner-thanexpected
exit from recession and a rapid
economic turnaround followed, with 2017
recording almost 4% growth – earning
Cyprus praise as an economic success
story. Cyprus’ resilience in the face of the
pandemic was once again evident with
GDP growth reaching a strong 5.5% in
2021, although the European Commission
forecasts a downturn to 3.2% growth in
2022. Consistent credit rating upgrades
have further boosted confidence and
foreign direct investment has been
flowing into all key sectors. Cyprus has
retained and strengthened its status as an
attractive investment gateway to the EU
and other high-growth markets, as well
as a secure base to tap into opportunities
in the Middle East. Offering a tax-efficient
EU company domicile, the country is also
emerging as a compelling destination
for regional headquarters and a base for
tech companies, as well as an increasingly
attractive location for fund managers and
promoters.
GROWING INVESTMENT FUND SECTOR
Cyprus has big ambitions in the
investment funds sector to establish
itself as a contender in the global asset
management industry. The steady growth
in both Assets under Management and in
the number of fund structures licensed
and active in Cyprus have underlined
the strength and appeal of the novice
domicile. Assets under Management
(AuM) have seen a formidable increase
from €2.7 billion in 2016 to €11.1 billion in
the first quarter of 2022, showing that it is
not the sector’s size but its fast growth that
has impressed, and is being recognised
by the global asset management and
CYPRUS FACTS
& FIGURES
EU Member since 2004,
Eurozone member since 2008
Cyprus’ maritime sector accounts
for €1 billion in annual revenue and
is around 7% of the island’s GDP
Cyprus is an established
international business and service
centre for shipping, financial
services and commerce, and is
classified by the World Bank as
a high-income country
Investment funds have already
invested more than €2 billion
in several sectors of the Cypriot
economy, such as shipping,
hospitality, education, healthcare,
and renewable energy
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