An Uncertain Future Lies Ahead For Cyprus’ Economy

Abstract

Cyprus’ modern economic history dates back to 1960. This short period saw the economy
destroyed twice (1974: 19% contraction and 2013: shrinkage of 10%-20%.) Cyprus now
needs to redesign its economy from zero base considering that its highly profitable services
sector has been destroyed. To come out of economic despondency Cyprus needs to: a.) apply
sound long-term planning, b.) encourage more inclusiveness in the decision-making process,
c.) introduce labor freedoms, d.) shrink its vast state sector, and e.) become more competitive
and f.) allow the ingenuity of its people to thrive.