The challenges of the service sector in 2022

The challenges of the service sector for the new year are being sampled by stakeholders, pointing out that 2022 brings growth prospects that should be exploited collectively.

The pandemic is considered to be the number one challenge, which is estimated to jeopardize growth prospects. At the same time, the stakeholders point out the components for achieving better performance, both for the service sector and for the economy in general.

Design, evaluation, control and safe options

KPMG CEO Christos V. Vassiliou, noted that the Commission in its report on Cyprus predicts an improvement and continuation of the growth path for the Cypriot economy by 4.0%, while inflation is expected to decrease, the budget deficit but also public debt in 2022.

"However, despite the auspicious forecasts, the challenges exist and can overturn development plans. "The evolution of the pandemic is of major importance for the development of specific sectors, especially tourism, which remains vulnerable."

He noted that at the beginning of 2022, it is also expected, with particular interest, the adoption by the state of the measures announced to attract businesses and / or strengthen existing business and investment activities on the island, noting that the creation of a base in Cyprus will have multiple benefits.

"Such measures are expected to boost the professional services sector as businesses that will be established on the island are expected to use such services," he said.

"It is clear that professional services adapt to market data, thus managing to be an important element in the development of the economy," he added.

Mr. Vassiliou stressed that the right planning, the evaluation of the financial and business environment, the right control of expenses but also the safe options must be high on the agenda of both the State and the companies.

He sent the message that "our country needs to maintain healthy economic data and create a business-friendly environment, which will give them room to grow", noting that "the green economy, sustainable development and the ESG as well as The prospects created by the Recovery and Sustainability Fund are expected to be key pillars in the development of the economy ".

Right politics, courage and determination, ideas, encouragement

"2021 showed signs of improvement in our local economy, compared to 2020 when we faced the pandemic for the first time and all the challenges it brought with it internationally," Deloitte chief executive Pieris Markou told StockWatch.

However, he noted, the impact it had on public finances and Cypriot business is great.

Mr Markou emphasized that the need to work together, state, agency and the private sector, to work together collectively, hard and in many directions, if the government and the EU are to achieve 4% GDP growth in 2022 - a goal for all. , to meet the old imbalances, to meet the challenges and to take advantage of the new opportunities for the creation of a more sustainable economy ".

He added that seeing the immediate reaction and the positive sign that the economy achieved in 2021, "we believe that the goal for 2022 is possible, but", as he stated, "a lot depends even on the evolution of the pandemic".

Regarding the challenges that exist in the real economy today, he noted that these include, among others, money market liquidity, attracting foreign investment, greater exposure of businesses and households to debt obligations and uncertainty in the business environment.

"Positive developments in all indicators of our economy require sound fiscal policy, boldness and determination for cuts and reforms, as well as imaginative ideas to promote new plans to strengthen entrepreneurship and encourage new sectors of the economy," he said. Mr. Markou.

Regarding the professional services sector in particular, he noted that 2021 also had a positive growth, expressing the hope that the same picture will prevail for 2022.

"If the impact of the pandemic is normalized and plans are made to attract foreign investment, we believe the sector will grow even more in the new year," he said.

He pointed out that "professionals in the industry also focus on promoting necessary reforms, modernizing the tax framework and generally enriching the economic model of Cyprus, to meet the new needs created by the changing international economic environment."