ICT sector adds €3 bln to Cypriot GDP
The contribution of the information and communication technology (ICT) sector to the Cypriot economy is estimated to reach 3 billion euros this year, boosting the diversification and resilience of the Cypriot economy.
According to the latest data, more than 1,200 foreign companies, mainly in the field of technology, set up operations in Cyprus through the Ministry of Commerce’s Business Facilitation Unit, while 9,800 job permits have been issued to foreign specialized personnel, something which boosted investments and domestic consumption and consequently gross domestic product growth. The strong expansion in the ICT sector in Cyprus has been acknowledged by the European Commission, which has upgraded its projection for GDP growth this year by 2.4% to 5.6%.
“This is due to higher-than-expected growth in the second quarter of the year, the better-than-expected performance of tourism, as well as the impact of the expanding ICT sector,” the Commission said in its latest post-program surveillance report.
In statements to the Cyprus News Agency, Evgenios Evgeniou, chairman of the Cyprus Investment Promotion Agency (Invest Cyprus), highlighted the importance of the ICT sector for Cyprus, as apart from its contribution to the economy, the sector contributes decisively toward the diversification of the country’s growth model and the reduction of the trade deficit.
According to data the ICT sector’s contribution is estimated at close to €3 billion this year, marking an annual increase of 58% compared to €1.9 billion in 2021. Although the ICT sector includes local telecommunication companies, the increase over €1 billion, amid growing uncertainty due to the war in Ukraine, is largely attributed to the attraction of foreign tech companies and specialized staff to Cyprus.
Cyprus implemented a plan to attract foreign technology companies and talent, involving an incentives scheme tabled by the Ministry of Finance, which has been approved by the Parliament and is being implemented by Invest Cyprus, the Ministry of Commerce, the Ministry of the Interior and the Deputy Ministry for Research, Innovation and Digital Policy.
“This performance is nothing but the fruit of a collective effort and action by the government, the Parliament, the public and the private sector,” Evgeniou added, noting that collective efforts yield results.
