2023-Cyprus-Country-Report
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CYPRUSCOUNTRY REPORT <strong>2023</strong><br />
STRONG REBOUND TO GROWTH<br />
Successive credit rating upgrades over the years and the continuous introduction<br />
of new incentives have attracted billions in foreign investment to <strong>Cyprus</strong>, with<br />
substantial inflows from the US, non-EU countries, and Asia including the Middle East.<br />
Although having withstood some serious economic shocks over the last ten years,<br />
the resilience and growth performance of <strong>Cyprus</strong> has been exceptional and even<br />
exceeded international expectations. Real<br />
I<strong>Cyprus</strong> GDP growth averaged 4.6% in 2018-2022<br />
was ranked third<br />
despite the Covid-19 pandemic, the war<br />
worldwide in the recovery<br />
in Ukraine and other related disruptions.<br />
Foreign investment flows have been of foreign direct investments<br />
significant. In the ten-year period 2013-<br />
after the pandemic.<br />
2022, net inflows (liabilities) reached €13.5<br />
billion. This investment was driven by equity, with data on transactions suggesting that<br />
real estate, communications and headquartering all played an important role.<br />
<strong>Cyprus</strong> was ranked third worldwide in the recovery of foreign direct investments<br />
after the pandemic, according to the country’s investment promotion agency, Invest<br />
<strong>Cyprus</strong>. According to the Greenfield FDI Performance Index of FDI Intelligence, direct<br />
investments in <strong>Cyprus</strong> showed a 150% increase in the first half of 2022, compared to<br />
the corresponding period in 2019. Also noteworthy is the increase in investments in<br />
software and IT, which reached a 600% increase in 2022 compared to the corresponding<br />
period in 2019.<br />
THRIVING TECH HUB<br />
IIn 2022 the country boasted<br />
almost 450 start-ups and scaleups<br />
with a combined value of<br />
€3.7 billion<br />
The technology and communications<br />
sector in <strong>Cyprus</strong> has become fiercely<br />
competitive, with a number of players<br />
deploying cutting edge solutions to both<br />
increase their local market share and<br />
generate growth through the launch of<br />
new technology and products. 5G was<br />
rolled out in 2021, making <strong>Cyprus</strong> the first<br />
EU state to achieve 100% 5G coverage.<br />
<strong>Cyprus</strong> is already home to a number of<br />
major tech firms, such as NCR, Amdocs,<br />
Wargaming, 3CX, Exness, Bolt, Thomson<br />
Reuters, Melsoft Games, Easybrain<br />
and Nexters, and has gained ground in<br />
successfully attracting investment capital<br />
in blockchain. The country’s start-up<br />
community has been growing rapidly. In<br />
2021, <strong>Cyprus</strong> broke national records with<br />
€85.5 million raised by start-ups, and<br />
in 2022 the country boasted almost 450<br />
start-ups and scale-ups with a combined<br />
value of €3.7 billion. With an estimated<br />
4,000 entrepreneurs, the buzzing hub<br />
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