COUNTRY PROFILE Cyprus
WORLD COMPETITIVENESS RANKING 207 All data are available from the World Competitiveness Online. Visit our eshop
COMPETITIVENESS TRENDS - OVERALL OVERALL PERFORMANCE (63 countries) CHALLENGES IN 207 Maintaining Maintaining fiscal fiscal discipline discipline in the in the face face of upcoming of upcoming elections. elections. Achieving political consensus to re-invigorate the structural reform agenda. Attracting productivity-enhancing investment. Tackling high public and private debt, and high non-performing loans. Addressing high unemployment, particularly youth unemployment. Provided Economics by: Research Centre, University of Cyprus, Nicosia Economics Research Centre, University of Cyprus, Nicosia 37 BASIC FACTS Rank Capital Land area (square km '000) Nicosia 206 Exchange Rate (per $) 0.04 206 Population - market size (millions) 0.82 206 6 Gross Domestic Product (GDP) (US$ billions).8 206 62 GDP (PPP) per capita (US$) 36,077 206 2 Real GDP growth (%) 2.8 206 2 Consumer price inflation (%) -.22 206 3 Unemployment rate (%) 3.00 206 57 Labor force (millions) 0.42 206 62 Current account balance (% of GDP) -5.26 206 Direct investment stocks inward ($bn) 38.3 205 33 Direct investment flows inward (% of GDP) 25.5 206 4 COMPETITIVENESS LANDSCAPE Economic Performance Government Efficiency Business Efficiency Infrastructure Domestic Economy International Trade International Investment Employment Prices Public Finance Tax Policy Institutional Framework Business Legislation Societal Framework Productivity & Efficiency Labor Market Finance Management Practices Attitudes and Values Basic Infrastructure Technological Infrastructure Scientific Infrastructure Health and Environment Education 5 4 23 27 3 46 3 57 38 3 4 45 48 42 46 56 PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS < 20 MILLION (34 countries) 24 23
COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS COMPETITIVENESS EVOLUTION The This criteria is Cyprus below first highlight entry in the The 5 IMD biggest World Improvements Competitiveness and the 5 Yearbook, biggest Declines therefore in the we show overall only performance Strengths of and the economy. Weaknesses. They Next are determined year we will by highlight the largest the percentage biggest Improvements changes in the and value Declines of each criterion in performance, from one determined yearbook to by the the next. percentage changes in the value of each criterion from one yearbook to the next. WCY WCY WCY 207 WCY WCY WCY 207 IMPROVEMENTS 206 207 DECLINES 206 207 STRENGTHS value rank WEAKNESSES value rank.3.04 Direct investment stocks abroad (% of GDP) 680.62.4.07 Long-term unemployment 5.80 47.3.08 Direct investment stocks inward (% of GDP) 706.84 3.3. Stock market capitalization (%) 3.8 2.2.3 Real corporate taxes 8.33 2.5. Females in parliament 2.50 2.5.03 Homicide 0..4.08 Youth unemployment 2.0 55..8 Gross fixed capital formation - real growth 25.5 2 4.3.06 Total R&D personnel.3 56.2.25 Tourism receipts 2.67 2 2..04 Total general government debt (%) 07.6.3.02 Direct investment flows abroad (% of GDP) 3.05 2 2.3.04 Country credit rating 38.30 4.5.03 Public expenditure on education per pupil 37.2 2 4.3.0 Total expenditure on R&D ($) 0 3.3.0 Banking sector assets 35.5 3 4.3.04 Business expenditure on R&D ($).2.3 Exports of commercial services (%) 44.85 4.2.02 Current account balance -5.26.3.06 Direct investment flows inward (% of GDP) 25.5 4 4.2.02 Mobile Broadband subscribers 2.6 2.2.07 Effective personal income tax rate 5.36 8 4.2.8 High-tech exports ($) 27 6 4.5.0 Student mobility inbound 5.0 8 3.3.0 Stock markets.83 62 4.5.07 Higher education achievement.7.2.08 Exports of goods ($bn).87 63 4.5.08 Women with degrees 62..3.5 Relocation threats of services 2.44 63 KEY ATTRACTIVENESS INDICATORS From a list of 5 indicators, respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key attractiveness factors of their economy. The chart shows the percentage of responses per indicator from the highest number of responses to the lowest. Competitive tax regime High educational level Skilled workforce Business-friendly environment Open and positive attitudes Policy stability & predictability Dynamism of the economy Cost competitiveness Effective legal environment Reliable infrastructure Effective labor relations Competency of government Access to financing Strong R&D culture Quality of corporate governance 86.% 80.6% 66.7% 63.% 30.6% 30.6% 30.6% 27.8% 22.2%.4% 3.%.% 5.6% 2.8% 2.8% 0% 0% 20% 30% 40% 50% % 70% 80% 0% 00%
COMPETITIVENESS TRENDS - FACTOR BREAKDOWN ECONOMIC PERFORMANCE 28 Sub-Factor Rankings : 206 Domestic Economy 0 International Trade 0 International Investment 0 Employment 0 Prices 0 207 46 3 5 57 4 GOVERNMENT EFFICIENCY 22 Sub-Factor Rankings : 206 Public Finance 0 Tax Policy 0 Institutional Framework 0 Business Legislation 0 Societal Framework 0 207 38 3 23 BUSINESS EFFICIENCY 50 Sub-Factor Rankings : 206 Productivity & Efficiency 0 Labor Market 0 Finance 0 Management Practices 0 Attitudes and Values 0 207 4 45 48 42 INFRASTRUCTURE 40 Sub-Factor Rankings : 206 Basic Infrastructure 0 Technological Infrastructure 0 Scientific Infrastructure 0 Health and Environment 0 Education 0 207 46 56 27 3
BALANCE SHEET - FACTOR BREAKDOWN STRENGTHS WEAKNESSES Economic Performance Rank Economic Performance Rank.3.04 Direct investment stocks abroad (% of GDP).3.08 Direct investment stocks inward (% of GDP)..8 Gross fixed capital formation - real growth.2.25 Tourism receipts.3.02 Direct investment flows abroad (% of GDP).3.06 Direct investment flows inward (% of GDP).2.3 Exports of commercial services (%).3.4 Relocation threats of R&D facilities.3.3 Relocation threats of production.5.05 Office rent 2 2 2 4 4 6 0.2.08 Exports of goods ($bn).3.5 Relocation threats of services..3 Diversification of the economy.2.0 Exports of goods (%).2.02 Current account balance.4.06 Unemployment rate.4.08 Youth unemployment..0 Gross fixed capital formation (%).2.2 Exports of commercial services ($bn).4.07 Long-term unemployment 63 63 62 6 57 55 55 50 47 Government Efficiency Rank Government Efficiency Rank 2.5.03 Homicide 2.2.3 Real corporate taxes 2.4.20 Redundancy costs 2.2.2 Real personal taxes 2.4.8 Unemployment legislation 2.2.07 Effective personal income tax rate 2.4.07 Investment incentives 2.2. Employer's social security contribution rate 2.4.08 Government subsidies 2..02 Government budget surplus/deficit (%) 3 6 8 3 3 3 2.3.04 Country credit rating 2..04 Total general government debt (%) 2.4.0 State ownership of enterprises 2.3.05 Central bank policy 2.4.06 Capital markets 2.3.07 Foreign currency reserves per capita 2.2.0 Collected total tax revenues 2.. Pension funding 2.3.02 Cost of capital 2.4. Competition legislation 5 4 42 3 3 37 Business Efficiency Rank Business Efficiency Rank 3.3.0 Banking sector assets 3.2.04 Remuneration of management 3.2.6 Female labor force 3.2. Finance skills 3.2.22 Foreign highly-skilled personnel 3.3.06 Finance and banking regulation 3.2.3 Labor force (%) 3..04 Labor productivity (PPP) 3.2.23 International experience 3.2.8 Skilled labor 3 6 7 8 2 24 25 26 26 27 3.. Use of digital tools and technologies 3.3.0 Stock markets 3.5.06 Digital transformation in companies 3.4.02 Changing market conditions 3.4.06 Corporate boards 3.4.08 Use of big data and analytics 3.2. Employee training 3.3.20 Corporate debt 3.3.8 Venture capital 3.4. Social responsibility 63 62 6 5 57 Infrastructure Rank Infrastructure Rank 4.5.03 Public expenditure on education per pupil 4.5.8 Language skills 4.5.0 Student mobility inbound 4.5.07 Higher education achievement 4.5.08 Women with degrees 4.. Dependency ratio 4.5.0 Total public expenditure on education 4.5.05 Pupil-teacher ratio (secondary education) 4.4.26 Quality of life 4.4. Energy intensity 2 6 8 3 5 6 4.3.25 Innovative capacity 4.2.02 Mobile Broadband subscribers 4.2.6 Funding for technological development 4.3.05 Business expenditure on R&D (%) 4.3.20 Scientific research 4.3.02 Total expenditure on R&D (%) 4.2. High-tech exports (%) 4.4.23 Sustainable development 4..5 Quality of air transportation 4.2.2 Cyber security 6 55 5
WORLD COMPETITIVENESS DIGITAL RANKING 207 All data are available from the World Competitiveness Online. Visit our eshop
DIGITAL TRENDS - OVERALL OVERALL PERFORMANCE (63 countries) Overall Alpha Alpha Factors Beta BetaLabel Gamma GammaLab Sub-Factors 2 2 2 2 2 2 4 3 3 2 2 6.5 3 3 2 2 8.5 3 3 2 2 0.5 3 3 2 2 46 56 22 5 Knowledge Talent Training & education Scientific concentration 45 Technology Regulatory framework Capital Technological framework 56 5 47 The direction of the triangle indicates the performance change from the last year: improved or stable declined Future readiness Adaptive attitudes Business agility IT integration OVERALL & FACTORS - 5 years OVERALL Knowledge Technology Future readiness 46 COMPETITIVENESS & DIGITAL RANKINGS Digital Competitiveness N.B. This graph provides only a comparison of the country s performance in the two rankings. 37 PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS < 20 MILLION (34 countries) 37 3
u Overall top strengths w Overall top weaknesses FACTORS BREAKDOWN - STRENGHTS AND WEAKNESSES KNOWLEDGE Subfactors Talent Training & education Scientific concentration 56 22 5 Talent Rank Rank Rank Training & education Scientific concentration Educational assessment PISA - Math 44 w Employee training 5 Total expenditure on R&D (%) International experience 26 u Total public expenditure on education Total R&D personnel per capita 44 Foreign highly-skilled personnel 2 u Higher education achievement Female researchers 22 Management of cities 26 u Pupil-teacher ratio (tertiary education) 8 R&D productivity by publication Digital/Technological skills 38 Graduates in Sciences 48 u Scientific and technical employment 2 w Net flow of international students u Women with degrees High-tech patent grants 47 TECHNOLOGY Subfactors Regulatory framework Capital Technological framework 45 Regulatory framework Rank Capital Rank Technological framework Rank Starting a business 2 IT & media stock market capitalization 4 Communications technology 50 w Enforcing contracts Funding for technological development 55 w Mobile Broadband subscribers Immigration laws 30 Banking and financial services 43 Wireless broadband 48 Technological regulation 47 Investment risk 43 Internet users - Scientific research legislation 3 Venture capital Internet bandwidth speed 50 Intellectual property rights 40 Investment in Telecommunications 40 High-tech exports (%) FUTURE READINESS Subfactors Adaptive attitudes Business agility IT integration 56 5 47 Adaptive attitudes Rank Business agility Rank IT integration Rank E-Participation 56 Opportunities and threats E-Government 4 Internet retailing - Innovative firms 24 Public-private partnerships 50 Tablet possession - Agility of companies Cyber security 5 Smartphone possession - w Use of big data and analytics Sofware piracy 33 Attitudes toward globalization 42 Knowledge transfer 4
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