Cyprus is the best-improved country in the IMD World Competitiveness Centre 2020 report after rising 11 places to rank 30 among 63 nations.
According to the report, Cyprus’ impressive progress is mainly due to the continued improvement of the general economic situation, especially in the field of employment and investment attraction.
The state’s improved efficiency is mainly in public finances, a better institutional and business environment, and the improvement of the welfare state. Another factor is the increased efficiency of businesses due to the reduction of corporate debt, increase in workforce, and improvement of the financial environment and business practices.
Singapore topped the list of 63 countries, followed by Denmark, while the USA which fell to number 7 from the third spot it held last year.
“Trade wars have damaged both China and the USA’s economies, reversing their positive growth trajectories. China this year dropped to 20th position from 14 last year,” according to the IMD World Competitiveness Centre.
“Cyprus’ rise upgrades the country’s image abroad. But there should be no complacency because there is still a lot of room for improvement,” it added.
IMD recommended that efforts to correct distortions and modernize the way the state and businesses operate must be continuous.
Cyprus’s position has improved in all categories that make up the overall ranking, with a particularly significant improvement in the categories of business efficiency and state efficiency, as well as overall economic performance.
Cyprus recorded great progress compared to 2019 in the long-term growth rate of the workforce, the budget surplus and the growth rate of fixed capital investments. Export of goods, the cost of electricity for industrial purposes and the degree of concentration of exports to a few trading partners were among the criteria that deteriorated sharply in 2020.
- In terms of economic performance, Cyprus ranked 13, rising from 19th place last year
- Regarding the state’s efficiency, Cyprus came 21st, compared to 32 in 2019
- In the category of business efficiency, Cyprus rose to 35th place up from 52 it held last year.
Based on an opinion poll carried out by the Centre, the three most important factors that make Cyprus economy attractive are, the prevailing business-friendly environment, the competitive tax regime and the high level of education of the workforce.
The Institute for Management Development (IMD) is an independent academic institution with Swiss roots and global reach, founded almost 75 years ago.