The Boston Consulting Group has released the 2016 Sustainable Economic Development Assessment report where the Cypriot economy is considered to be entering an upside trend. According to the study, Cyprus has significantly improved its key economic, investment and sustainability factors, placing the country as one of the top performers in terms of converting wealth into well-being. The growth prospects for the year to come are expected to surpass 3%, where expectations are further strengthened by the country’s recent departure from the Troika Program in April this year.
This positive outlook on the Cypriot economy has sent a strong message to the global markets and has resulted in an increased interest from foreign investors. Maintaining one of the most favorable legal and tax systems in the EU, the country has managed to attract a number of foreign financial companies and large investment funds. The ever growing uncertainty caused by the recent Brexit vote is contributing to the momentum that Cyprus is gaining, underlining its stable economic climate and predictable business environment.
As a result of the above improvements, the property values for the local market have been steadily rising, mostly thanks to foreign demand in luxury residential and commercial properties, especially in Limassol. An underlying factor in this rise is the Citizenship by Investment Program which has by now established itself as the quickest and most exclusive program in the industry. For 2015 only, Cyprus has managed to raise more than €1.1 billion in foreign direct investment. A great portion of these funds has been allocated to real estate investments.
As the Cyprus University has recently estimated, the local economic climate indicators have returned to their 2008 pre-crisis levels. The Government’s efforts to further the exploration of blocks in the South Eastern Mediterranean and the presence of global giants such as Exxon-Mobil, Total and ENI are only one more reason to believe that the upside trend will hold in the medium to long run.
Cyprus is certainly regaining its reputation for sound economic management, and with the raise of instability and uncertainty in the EU and the rest of the world, it is looking at a golden opportunity of establishing itself as a safe haven, attracting investments from Europe, Russia and the Middle East.
Source: Global Citizenship magazine – Arton Capital
