The strengthening of Cyprus` economy potential for growth and competitiveness was discussed Monday during the Economist Conference that takes place here October 8-9, under the auspices of the Cyprus Presidency of the Council of the EU.
Speaking at the Conference, President of the Cyprus Chamber of Commerce and Industry Phidias Pilides said that the end of 2012 finds the economy in the second phase of its deep recession, which is no longer due to the world economic crisis but it is more a result of the gradual loss of the competitiveness and productivity of Cyprus` economy. He added that the adverse economic climate has become worse by the inability of the government to take decisive and timely action to address fiscal imbalances.
Referring to the problems of the banking sector, he said that they are not only due to the significant haircut of theGreek public debt, but also because of the large number of non-performing loans.
As encouraging fact, he stressed, is the increase of foreign trade and of revenues from tourism, as well as the discovery of hydrocarbon reserves in Cyprus’ EEZ.
He finally expressed the belief that that the suggestions included in the Troika memorandum for Cyprus, form a sound basis for a programme of action to correct competitiveness issues.
In his speech at the conference, Chairman of the BoD of the Cyprus Investment Promotion Agency (CIPA) Christodoulos Angastiniotis emphasized the advantages of Cyprus as an investment destination, among which are the very low taxation for investment, its geographic position as a bridge that connects Europe with Asia and Africa, the country’s participation in the eurozone, iits nfrastructure, human resources and the high quality of services.
He also said that the Cypriot economy has good future prospects, mainly through its financial services, the exploitation of the gas deposits found in its EEZ, the development of renewable energy sources and the further development of the already substantial area of Cypriot shipping.
Referring to the economic crisis in Cyprus, Angastiniotis pointed out that the government is taking the necessary steps to reduce the fiscal deficit and ensure economic stability.
Addressing the Conference, General Manager of Cyprus’ Port Authority Yiannakis Kokkinos,said that it is a major challenge for Europe to emerge as a positive power in the framework of a renewed management and exploitation of ports, a field which helps greatly in transport and trade.
He also said that the development of Cypriot ports will facilitate Cyprus` further integration as an island state of the EU, on the basis of a more efficient transport network.
