Unlike developed industries where on-site work is a must, Cyprus adopted fast during the pandemic. Remote work has reduced GDP (Gross Domestic Product) to 5% and maintains the unemployment rate stable at 7.6% in 2020. During the European Investment Bank Annual Press Conference, Finance Minister Constantinos Petrides points out the benefits of remote work.
As the Minister said, remote policies increased Cypriot household savings by 2.4% in February 2021, compared to the last year’s 0.2%. At the same time, private consumption decreased by -4.7% in current prices and by -3.9% in volume prices. Petrides expects a rebound by 4.5% of the GDP in 2021, following the pandemic-induced contraction of 5.5% last year.
A member of the EU since 2004, Cyprus is one of the largest and populated Mediterranean islands. Nicosia, the capital, hosts over 250,000 people. The Finance Minister remarks how this expected growth comes with the uncertainty of the global situation. During the pandemic, the government reached 120% of public debt — 25 points higher than 2019. Large loans are one of the biggest challenges for the Cypriot economy and the banking sector.
Remote work strategies, however, maintain the unemployment rate lower than expected. If the county’s debt recorded a peak of 45% in 2014, the loans stood at 21% in September 2020 — recovering almost 28 billion euros. The Cypriot policy aims to drop the public debt down to 93% by 2023, including remote work as a core strategy.
While Petrides is preparing an action plan, remote work is a reliable ally for sustainable employment and production processes.