Study Calls for New Economic Model in Cyprus

According to a study by the Cyprus Centre for European and International Affairs, the Cypriot economy needs a new model to address modern challenges and promote social cohesion.

The study points out that despite the increase in GDP, the purchasing power of wages has remained stagnant since 2008, while inequalities and poverty rates have increased. It also mentions the shrinking of the primary and secondary sectors, with the tertiary sector accounting for 86.9% of GDP.

The authors of the study, Andreas Theophanous and Mairy Varda, argue that Cyprus follows contradictory practices, with clientelistic relationships in the public sector and neoliberal approaches in other sectors. They point out that the state payroll is expected to reach €4.3 billion by the end of 2025.

The study emphasizes the need to strengthen control and accountability mechanisms, as well as for effective management of migration flows. It proposes the diversification of the economy's structures, the utilization of energy resources, and the support of local production.

In addition, it suggests the creation of a modern medical center and the transformation of Cyprus into an international academic center. The study highlights the need to support research and innovation, as well as to strengthen institutions that ensure efficiency and transparency.

Finally, it refers to the need for a balanced approach to the labor market, as well as for a substantial upgrade of the country's political life.