IMD World Competitiveness Booklet 2020

COMPETITIVENESS TRENDS - OVERALL CYPRUS

OVERALL PERFORMANCE (63 countries)

BASIC FACTS Capital Land area (square km '000)

Rank

Nicosia

2016 2017 2018 2019 2020

9 2019

0.893 2019 0.88 2019 24.6 2019 41,930 2019 3.2 2019 0.56 2019 7.25 2019 0.45 2019 -7.38 2019 224.3 2018 97.05 2019

30

Exchange Rate (per $)

37

41

41

61

Population - market size (millions)

CHALLENGES IN 2020 Balance re-opening economy and threat of Covid-19 resurgence: manage recession of uncertain magnitude/duration; safeguard • Balance re-opening economy and threat of Covid-19 resurgence: manage recession of uncertain magnitude/duration; safeguard employment; rebuild trust in most affected industries (e.g. retail, tourism); manage fiscal challenges. • Management of public sector economy and finances. • Digital transformation of public and private sector. • Avoid re-escalation of NPLs in view of negative outlook. • Encourage alternative investments to increase economic diversification.

61

Gross Domestic Product (GDP) (US$ billions)

26

GDP (PPP) per capita (US$)

17

Real GDP growth (%)

11

Consumer price inflation (%)

51

Unemployment rate (%)

62

Labor force (millions)

61

Current account balance (% of GDP)

26

Direct investment stocks inward ($bn)

Economics Research Centre, University of Cyprus Cyprus Employers and Industrialists Federation (OEB) Pr vided by: Economics Research Centre, University of Cyprus Cyprus Employers and Industrialists Federation (OEB)

1

Direct investment flows inward (% of GDP)

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 and Values

Basic Infrastructure

Technological Infrastructure Scientific Infrastructure

Health and Environment Education

2

4

5

13

19 19

24

29

31

32

34

36

37

37

40

48 49

53 53

53

PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (40 countries)

POPULATIONS < 20 MILLION (34 countries)

2016 2017 2018 2019 2020

2016 2017 2018 2019 2020

19

19

23

24

25

26

28

28

65

IMD WORLD COMPETITIVENESS BOOKLET 2020