IMD World Competitiveness Booklet 2023

Competitiveness Country Profiles

Cyprus Competitiveness Trends – Overall

OVERALL PERFORMANCE (64 countries)

BASIC FACTS

Rank

2019

2020

2021

2022

2023

Capital Land area (square km '000)

Nicosia

9 2022

30

0,950 2022

33

Exchange rate (per $)

40

41

45

0,91 2022 62 28,4 2022 61 49.043 2022 31 5,6 2022 16 8,08 2022 31 6,95 2022 47 0,48 2022 63 -9,12 2022 62 406,4 2021 20 -117,42 2021 62

Population - market size (millions)

Gross Domestic Product (GDP) (US$ billions)

CHALLENGES IN 2023

GDP (PPP) per capita (US$)

• Maintain fiscal sustainability and declining trend in public debt ratio. • Avoid re-escalation of NPLs due to tightening financial conditions. • Implement structural reforms (Recovery and Resilience Plan, Long-Term Economic Strategy). • Target inflation measures towards vulnerable groups; agree on Cost-of-Living-Allowance mechanism. • Manage migration flows effectively.

Real GDP growth (%)

Consumer price inflation (%)

Unemployment rate (%)

Labor force (millions)

Current account balance (% of GDP)

Direct investment stocks inward ($bn)

Direct investment flows inward (% of GDP)

PROVIDED BY: Economics Research Center, University of Cyprus Cyprus Employers and Industrialists Federation (OEB)

COMPETITIVENESS LANDSCAPE

Economic Performance Government Efficiency

Business Efficiency

Infrastructure

Domestic Economy

International Trade

International Investment Employment Prices

Public Finance Tax Policy

Institutional Framework Business Legislation

Societal Framework

Productivity & Efficiency Labor Market Finance

Management Practices Attitudes & Values

Basic Infrastructure

Technological Infrastructure Scientific Infrastructure

Health & Environment Education

13

16

19

26 25

31

34

37

48 46 45

49 48 47

51

54 55 53 51

63

PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (41 countries)

POPULATIONS < 20 MILLION (37 countries)

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

19

21

19

20

27

28

30

25

25

27

69