Cyprus raises the share of industrial production in the GDP | Finance and Markets

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Cyprus government targets increase of the share of industrial production in the GDP to reach 15% by 2030, which is twice more than the last year’s result of 7.9%. The total productivity has to be increased by 100% and exports to raise by 150%. The digitization of industry, the creation of a new model of industrial zones, the development of innovative products and services with high added value are key issues, the solution of which can ensure the successful future of the economy in Cyprus.
These are part of the parameters set in the new “National Industrial Development Strategy to 2030”, which the government of the country presented last week to a big business meeting – industrialists, experts, technocrats, representatives of business organizations and banking sector. By the middle of this year the Action Plan is expected to be ready, which is being developed jointly by the Ministry of Economy and the two leading business organizations – the Cyprus Chamber of Commerce and Industry and the Federation of Industrialists and Employers. It will be reviewed and evaluated annually.
The new long-term government policy is aimed at “creating a new era of industry”, announced the ambitious goal of the Minister of Energy, Trade, Industry and Tourism Yiorgos Lakkotrypis.
The industry in Cyprus has been underestimated in recent years, especially against the tourism sector, unanimously recognized as a “locomotive”, successfully pulling the country out of the severe crisis in 2013. By contrast, it has never been high on the political agenda and in the country’s development plans. As a result, in 2017, its contribution to Gross Domestic Product reached only 7.9%, and its employees account for 8.8% of the island’s labor market.
The new strategy must overcome this lag, especially since the industry has shown excellent sustainability during the economic crisis and has very good prospects in support of the Cypriot economy. The industry has the potential to increase production and exports to improve trade balance and employment, so the need to revive it and modernize it is an important part of the full recovery of the country’s economy and the creation of conditions for sustainable development in the medium and long term. In the new strategy document, this goal is recorded as “the creation of a solid, intelligent and technologically advanced industry that will help boost economic growth and prosperity, which will greatly contribute to the development and competitiveness of the economy and the well-being of citizens”.