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Wednesday, February 5, 2014

Is the Cypriot economy on the rise?

By Nicos Stavros

We have all seen the way the Cypriot economy has collapsed in the news, inhabitants were all taxed involuntarily and thousands of people lost their jobs. Cyprus has been a haven for tourists in the past and it was extremely sad to see such a beautiful island struggle in such a helpless way. Angela Merkel and the Germans weren’t willing to bail out Cyprus after the Greek economy collapsed and Cyprus was rather the trapped country of Europe.

Thousands of Cyprus residents lost jobs after economic decline
Signs of economic recovery are evident in Cyprus
There have however, been signs of recovery in recent months and the new deal signed with Britain to free up a lot of land locked area can only be of benefit. This will lead to an increase in foreign investment and the willingness of Greek banks to start lending money again. Obviously it is a work in progress and the Greek economy certainly isn’t out of the mire just yet, but there have certainly been signs of movement in recent months and that movement has been in the right direction.

British deal

Cyprus' economy will benefit from foreign investment
The Cypriot economy has been modernizing to keep pace
The recent deal with the British to open up British military bases for development can only be a brilliant thing for the Cypriot economy. It will increase investment both internally and externally and can certainly give the county a well-deserved and needed economic break. 

The world is changing and Cyprus has needed to diversify and adapt for some years now. The infrastructure in place was antiquated and quite corrupt if you ask me and being in the public eye has led to Cyprus modernizing and moving themselves forward as a country.

I believe Cyprus is a country on the rise and wealth managers such as Brett Lankaster for example should now look towards the country for their clients. Providing a diverse client service is essential in these kind of companies and thus taking a subtle risk with countries like Cyprus, who are hopefully emerging from the mire, can sometimes pay off.

Stabilization

The country is becoming much more stable, socially and economically and that is brilliant for the people of Cyprus and Europe as a whole. The EU as a body cannot have countries bringing it down if it is to work together as a unified force and thus the stabilization of Cyprus will come as welcome news to so many. The world economy is also changing, with the stagnation of the Chinese economy taking precedence on the news, emerging economies such as Latvia will start coming to the fore. While they will never rival China in terms of growth, their impact is increasing.

Taxation

The taxation system in Cyprus has also sorted itself out. The system is much fairer and puts everyone on a level playing field if you like. It is important that everyone works towards the betterment of the country and this is starting to happen in Cyprus, the future is certainly much brighter that it was a few months ago and that is brilliant for nationals the world alike. We have to ask ourselves, is the Cypriot story reflective of the global economic recovery?


About the author: Nicos Stavros is a Greek writer with experience both in Cypriot government and economic modeling. He has over 15 years writing experience and has compiled several articles on the Greek recovery.
Image licenses: Smart photo stock