The Cyprus Economy and Competitiveness Council (CECC) has announced the start of a project aiming to draft a blueprint on Cyprus’ future long term sustainable economic growth.
The project that obtained funding by the European Commission’s Structural Reform Support Service will be carried out by the advisory firm PwC and is expected to be ready by the end of 2021.
CECC President, Takis Clerides, told a press conference that after the 2013 financial crisis Cyprus took the necessary measures to restore the soundness of the public finances, stabilized the banking sector and fostered economic growth but structural weaknesses remain hampering the economy’s long-term prospects.
“A new plan is needed over a modern growth model that would give the economy strong competitiveness, outwardness, innovation, the widening of the production base, flexibility and adaptability in the shifting international conditions and would secure social and climate sustainability,” he said.
He added that the Council will seek to draft a new strategic plan accompanied with action plans for its implementation, noting that the plan will be drafted in consultation with all involved, political parties, the social partners and all other stakeholders.
On his part, Council member and head of the steering committee, Andreas Assiotis, said that the plan should be considered as a plan belonging to the Council and the government but as one belonging to all Cypriots.
“We may not agree on what should be done tomorrow or on something we may not like today but in the long run, we should agree where would want to go,” Assiotis said and added the destination is sustainable growth.
“Sustainable growth means that we should be able to face external shocks since a small and open economy will be faced with this risk and therefore we should be prepared.”
“Sustainable growth means that we should be able to face external shocks since a small and open economy will be faced with this risk and therefore we should be prepared,” he added.
The strategic plan will have a horizon of 10 to 15 years but will not be static and will be revised every five years, he added.
On behalf of the European Commission, Stratis Kastrisianakis, praised Cyprus recovery following the financial crisis but echoed the Commission’s and other organizations’ remarks that Cyprus still faces challenges that would obstruct future growth prospects.
Filippos Sosilos, head of the PwC’s advisory said the firm will consult all stakeholders while drafting the plan.
He noted however that the plan implementation will be further facilitated if accompanied by structural reforms.