Nicosia, Cyprus. The Cyprus Economy and Competitiveness Council on Monday presented the Cyprus Competitiveness Report 2025, highlighting the need to attract more productive investments that create genuine economic activity, new jobs and knowledge transfer. The report identifies this as one of the country’s foremost economic priorities.
Broadening the definition of competitiveness
Presenting the report’s findings in Nicosia, University of Cyprus economics professor Sofronis Clerides, who led the research team responsible for the study, said competitiveness can no longer be measured solely in economic terms.
He said competitiveness should instead be linked to a country’s ability to create sustainable prosperity through an effective business environment, strong economic performance, and social and environmental sustainability.
Productivity identified as key weakness
The report identifies productivity as Cyprus’ biggest structural weakness.
It states that despite low unemployment, high employment rates and the substantial inflow of skilled workers in recent years, Cyprus continues to lag behind many competing economies in terms of productivity.
An exception is the information and communications technology (ICT) sector, which has recorded much stronger performance and represents perhaps the most successful example of the productive upgrading of the Cypriot economy.
Benchmark countries and priorities
The report compares Cyprus with twelve benchmark countries: Greece, Malta, Israel, Slovenia, Portugal, Ireland, the United Kingdom, the Netherlands, Germany, Denmark, Estonia and Finland.
It identifies three horizontal priorities: strengthening productivity, creating conditions that allow businesses to grow and scale up, and improving the state’s ability to implement reforms.
Focus on Vision 2035 implementation
The report places particular emphasis on updating and systematically monitoring Vision 2035, including the establishment of a dedicated implementation unit capable of ensuring continuity beyond changes in government.
Nature of foreign investment discussed
During the discussion that followed the presentation, speakers said that although Cyprus continues to attract substantial foreign investment, much of this consists of company relocations, acquisitions or financial transactions rather than new productive facilities, industrial units or activities that generate significant new economic value.
