Cyprus competitiveness report 2025 highlights structural productivity issues

On Monday in Nicosia, the Cyprus Economy and Competitiveness Council (SOAK) presented the 'Cyprus Competitiveness Report 2025'. Led by Professor Sofronis Clerides of the University of Cyprus, the research team identified low productivity as the primary structural weakness of the Cypriot economy. This finding persists despite the country's low unemployment rates, high employment levels, and the recent influx of skilled human capital. The report suggests that Cyprus must move beyond attracting purely financial transactions or company relocations. Instead, the focus should shift toward investments that generate tangible economic activity, new jobs, and technology transfers. The Information and Communication Technology (ICT) sector is highlighted as the sole area showing successful productivity growth. The report compares the Cypriot economy against twelve reference countries, including Greece, Malta, Israel, Slovenia, Portugal, Ireland, and the United Kingdom.