Cyprus is getting less competitive
Cyprus has experienced a decline in its global competitiveness for a third consecutive year, dropping from 40th position to 45th out of 64 countries in the IMD World Competitiveness Center rankings. This marks Cyprus’ lowest position since its participation in the rankings, according to the University of Cyprus’ Economic Research Center (ERC).
The deterioration in competitiveness can be attributed to a decline in all four aspects evaluated: economic performance, government efficiency, business efficiency, and infrastructure. Cyprus’ economic performance has been negatively impacted by reduced foreign direct investment flows, a deficit in the current account balance, worsening terms of trade, and limited goods exports.
The institutional framework has also hindered government efficiency, with weaknesses in capital cost, transparency and bureaucracy. Additionally, deficiencies in basic and technological infrastructure have further contributed to the decline.
Business efficiency is identified as the most burdensome factor in this year’s ranking, largely due to weaknesses in administrative practices and the implementation of digital transformation in enterprises.
