The Cyprus economy has taken positive steps forward but it still faces serious problems, according to Limassol Chamber President Costas Galatariotis.
Addressing the 6th Limassol Economic Forum, which convened in Limassol in October, Mr. Galatariotis cited the achievement of a positive growth rate for the first time since 2011, the substantial reduction of the Bank of Cyprus’ ELA, the renewed profitability of the banking sector and improved evaluation of Cyprus by international rating agencies. There occurred at the same time an improvement in the overall business and investment environment, the ongoing privatization of the management of Limassol port has attracted serious interest internationally, and additional investment projects are coming up, such as the casino-resort and the Pentakomo Scientific and Technological Park.
However, the LCCI President continued, there are still major problems, especially for private sector employers and employees, who have borne the brunt of the economic crisis. Liquidity remains scarce as are financing prospects, since the banking system is still burdened with a huge volume of non-performing loans. Most enterprises are engaged in a veritable struggle for survival and unemployment remains at alarmingly high levels.
Mr. Galatariotis noted, moreover, that in addition to what Cyprus has been called upon to do in terms of structural reform, as it is a member of the eurozone, its fortunes are also inevitably intertwined with events and developments in Europe. In a brief reference to the current state of the eurozone, he observed that despite the positive climate brought about by low oil prices internationally and the quantitative easing implemented by the European Central Bank, the overall performance of the European economy remains lacklustre, apparently due, among other causes, to an easing of demand for European products and services by leading non-EU economies, such as those of China, Russia and Brazil. Therefore, he concluded, the title of the 6th European Forum, The Future of the European Economy, was very well chosen.
