Cyprus Econ Council begins work on future sustainable growth blueprint

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.

In a press conference on Tuesday, CECC President Takis Clerides, said that after the 2013 financial crisis, Cyprus took the necessary measures to restore the soundness of its public expenditure, stabilised the banking sector and fostered economic growth.

But but structural weaknesses remain, Clerides said, hampering the economy’s long-term prospects.

“A new plan is needed, that would offer a modern growth model that would boost the economy’s competitiveness, innovation, would widen its production base, flexibility, and adaptability in the shifting international conditions,” Clerides noted.

He added that such a plan would also need to secure the island’s social and climate sustainability.

The Council will seek to draft a new strategic plan accompanied with action plans for its implementation, Clerides said, noting that the plan will be drafted in consultation with all stakeholders, including political parties.

On his part, Council member and head of the steering committee, Andreas Assiotis, said that “we may not agree on what should be done tomorrow or on something we may not like today, but we should agree where want to go in the long run.”

The destination, Assiotis said, should be sustainable growth.

“Sustainable growth would mean that we would be able to face external shocks, since as small and open economy, we will face this risk and therefore we should be prepared,” he added.

The strategic plan will have a horizon of 10 to 15 years, Assiotis said, and will undergo revision every five years.

On behalf the European Commission, Stratis Kastrisianakis, praised Cyprus’ recovery following the financial crisis, but echoed the Commission’s and other organisations’ 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 implementation of the plan will be further facilitated if accompanied by structural reforms.