Cyprus climbs two spots in 2026 IMD world competitiveness rankings

Cyprus improved its ranking in the 2026 IMD World Competitiveness Yearbook, moving to 42nd place out of 70 economies, up from 44th in 2025. The assessment, based on 341 criteria, places the country 30th in economic performance, 30th in government efficiency, 46th in business efficiency, and 42nd in infrastructure. Significant progress was reported in economic performance and business environments, with both categories seeing a six-place improvement. Key factors contributing to this growth include low unemployment, rising employment levels, slowing inflation, and robust performance in services exports. The report also identified improvements in business flexibility, reduced tax evasion, and a more positive international image for the country. The University of Cyprus Economic Research Centre and the Cyprus Employers and Industrialists Federation (OEB) acted as local partner institutes for this study. The findings represent a reversal of declines observed in previous years, highlighting increased resilience and foreign direct investment as core strengths.