Cyprus’ ranking up from 68th to 18th, in the Greenfield FDI Performance Index, which records the performance of countries in attracting foreign investment, is of “great importance” for jobs and revenues, especially in today’s volatile international environment, Finance Minister, Constantinos Petrides said on Friday.
Cyprus has ranked 18th, in the seventh edition of the Greenfield FDI Performance Index of the FDI Intelligence for 2021, going up by 50 places compared to 2020 in attracting foreign direct investment.
In a written statement, the Foreign Minister stressed that this was a result “of our policies and the implementation of the new growth model “Vision 2035”, which we have planned and adopted in cooperation with the Economy Council.”
He added that these policies are creating well-paid jobs and contain the increase in unemployment in times of crisis, “increase incomes or even contain them in times of crisis.”
Referring to the Greenfield FDI Performance Index, the Minister said that Cyprus recorded the biggest improvement among all countries, with foreign direct investments increasing in the 1st half of 2022 in Cyprus by 150% compared to pre-pandemic levels (1st half of 2019).
He also said that investments in software and information technology increased “by an impressive 600%” (compared to 2019), which confirms, as he emphasises, the success of the "Business Facilitation Programme" for the promotion of the country as an emerging technology hub.
The Minister also said that this was the same period “that our country recorded a growth rate of more than 6%, approximately 30% higher than the EU average.”
Petrides also noted that Cyprus managed a very significant upgrade of its economy by rating agencies, “due to its performance, diversification and resilience”, at a time when, “as a rule,” most countries are downgraded due to the economic crisis.
“Undoubtedly we are going through yet another international economic crisis, which is testing our endurance as well as that of every country,” he said, adding that, the Government has supported and is supporting the people with €350 million against the inflation and the increase in the price of energy. This, he said, is in addition to the €3 billion support during the pandemic.
The Minister pointed out that “the answer to the crisis, to the containment of unemployment, especially in times of inflation,” is not populism but “serious policies to attract real investments and economic development.”
He said that they are committed to these policies so that the country does not experience again the recession, unemployment and shrinking incomes experienced in the recent past.