2023-Cyprus-Country-Report
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CYPRUSCOUNTRY REPORT <strong>2023</strong><br />
Following the country’s financial crisis<br />
in 2013, <strong>Cyprus</strong> undertook a major<br />
reform agenda and while still facing<br />
some economic challenges, the small<br />
EU nation has demonstrated resilience<br />
and an ability to bounce back to growth.<br />
The year 2015 signalled a sooner-thanexpected<br />
exit from recession and a rapid<br />
economic turnaround followed, with 2017<br />
recording almost 4% growth – earning<br />
<strong>Cyprus</strong> praise as an economic success<br />
story. <strong>Cyprus</strong>’ resilience in the face of the<br />
pandemic was once again evident with<br />
GDP growth reaching a strong 5.6% in<br />
2022, although the European Commission<br />
forecasts a downturn to 2.2% growth in<br />
<strong>2023</strong>. Consistent credit rating upgrades<br />
have further boosted confidence and<br />
foreign direct investment has been<br />
flowing into all key sectors. <strong>Cyprus</strong> has<br />
retained and strengthened its status<br />
as an attractive investment gateway to<br />
the EU and other high-growth markets,<br />
as well as a secure base to tap into<br />
opportunities in the Middle East. Offering<br />
a tax-efficient EU company domicile, the<br />
country is emerging as an increasingly<br />
attractive location for fund managers and<br />
promoters, and a compelling destination<br />
for regional headquarters and a base for<br />
tech companies.<br />
GROWING TECH CLUSTER<br />
The technology space in <strong>Cyprus</strong> is<br />
seeing a fresh boost with more state<br />
support to the sector, the launch of new<br />
national strategies to integrate innovative<br />
tech, and fresh incentives to attract<br />
more digital nomads, IT start-ups and<br />
regional headquarters. With its new focus<br />
on long-term development outcomes,<br />
<strong>Cyprus</strong> is determined to diversify and<br />
harness growth with a technology-driven<br />
economy. The biggest spender by far<br />
on IT in <strong>Cyprus</strong> is the financial sector,<br />
followed by the telecoms providers and<br />
the public service. Albeit one of the<br />
smallest EU member states, research and<br />
EU Member since 2004,<br />
Eurozone member since 2008<br />
<strong>Cyprus</strong> is the EU’s largest<br />
shipmanagement centre and<br />
amongst the top three in the world<br />
<strong>Cyprus</strong> is an established<br />
international business and service<br />
centre for shipping, financial<br />
services and commerce, and<br />
is classified by the World Bank<br />
as a high-income country<br />
With its new focus on longterm<br />
development outcomes,<br />
<strong>Cyprus</strong> is determined to diversify<br />
and harness growth with a<br />
technology-driven economy.<br />
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