1.1 Trade of Products
Cyprus trade with Greece for twelve months in 2023 (January – December 2023) was once again at the highest level of the decade for both markets. Specifically, Greece is the second export destination of Cypriot products after the United Kingdom (excluding petroleum products). At the same time, the Cypriot market particularly prefers Greek products, with the result that Greece is in first place in Cypriot imports.
The aforementioned is confirmed with Cypriot domestic exports to Greece increasing by 2.2% in the 12 months of 2023 (2023: €124.5 million, 2022: €121.76 million). Exports of Cypriot products (domestic and re-exports) in the 12 months of 2023 decreased by 6.9% to €282 million (2022: €302.8 million), placing Greece as the second main recipient of Cypriot products for 2023 and beyond the UK In the same period (Jan – Dec 2023), the value of Greek products imported into Cyprus amounted to 2.84 billion euros, an increase of 5.6% compared to the same period last year (Jan – Dec 2022: 2.68 billion euros).
(Source: Cyprus Statistical Service)
Specifically, halloumi for the period Jan – Dec 2023 Greece ranked 4th (5th in 2022) among the leading importing countries, including the United Kingdom, Sweden and Australia.
The export of halloumi to Greece in the 12 months of 2023 was 26% higher than the corresponding period of 2022 (2023: 14.3 million euros, 2022: 11.38 million euros), which can be attributed to the very good acceptance of traditional Cypriot cheese, from the consumer and catering professionals.
The main products exported in 2023 were iron and steel waste and scrap (18% of the total), cheese products including halloumi (15%), potatoes (14%), pharmaceuticals (14%) and aluminum and copper waste (6%).
The main products imported from Greece in 2023 were fossil fuels & petroleum (28.5% of the total), electrical appliances (9%), machinery (6%) and medicines (5.6%).
1.2 Trade of Services
The main services exported to Greece in 2022 were travel (43%), transport (31%), financial (12%) and others (11%).
Strengthening service exports and business relationships
The Services sector is the driving force for further development of the Cypriot economy in a wide range of economic activities. Strengthening the extroversion of Cypriot service providers and strengthening the visibility of Cyprus as an International Business and Service Center is a priority. In recent years, emphasis has been placed on the field of education with the participation of Cyprus in various exhibitions of an educational nature, as well as the organization of exhibitions of higher educational institutions in various cities of Greece (Athens, Thessaloniki, Patras, Alexandroupolis, Heraklion of Crete, Chania, Kalamata, Karditsa , Trikala, Ioannina, Corfu etc.). Other areas that are being studied and will be promoted in the next two years in the Greek territory are the promotion of Startup Enterprises, Artificial Intelligence (AI) and Intellectual Property (IP) with the help of Cypriot technocrats from various public and private services.
With regard to the chapter of relations between Cyprus and Greece, especially in the field of promotion of services, the following is recorded:
- Educational missions with the aim of presenting Cypriot Higher Education in the Greek market
In the year 2023, in collaboration with the CTC Athens and the CCCI, 2 educational missions were organized in various cities of Greece:
– 3-9 April 2023 exhibitions for the presentation of Cypriot Higher Education Institutions in Heraklion, Chania and Athens.
– November 25-27, 2023 in Athens and Thessaloniki. 12 educational university institutions were presented to the public.
According to the trade data, there is scope for strengthening the Cyprus-Greece bilateral trade relations, with the increase in trade flows between the two countries in terms of trade in services. To this end, the Trade Service is willing to work with the respective competent authorities of Greece to jointly promote initiatives to encourage cooperation between the business world of the two countries through, among other things, the organization of a business mission.
These activities contribute to the promotion of higher education and the efforts made by the Republic to make Cyprus a regional educational center.
1.3 Investments
The amount of incoming FDI (stocks) from Cyprus to Greece, according to the Central Bank of Cyprus, on December 31, 2022 was negative at -€2.75 billion due to accumulated losses of Cypriot companies in Greece. The amount of outgoing FDI (stocks) from Greece on the same date amounted to €5.2 billion.
1.4 Main activities of the Cyprus Trade Center of Athens
The Athens Cypriot Trade Center was founded in 1983 with the aim of promoting and promoting Cypriot products and services in the Greek market.
The Cyprus Trade Center in Athens is also responsible for the countries of Romania, Bulgaria and Italy.
The main activities and objectives of the Shopping Center in Athens focus on the following:
- Promotes the trade of products and services between Cyprus and Greece.
- Promotes Cyprus as an international business and financial investment center.
- Identifies and promotes investment opportunities in Cyprus.
- Provides information on business matters, investment plans, establishing a business in Cyprus and other legislations related to the business environment in Cyprus.
- Identifies and investigates commercial opportunities for Cypriot businesses in Greece and accredited countries.
- Conducts market studies with the aim of providing assistance to Cypriot entrepreneurs for their entry into new markets.
- Participation in exhibitions
Cyprus Trade Center Athens, within the framework of the promotion of Cypriot products and the effort to increase Cypriot exports to Greece, participates in the following exhibitions held in various cities of Greece:
Exhibitions with state pavilion:
- Food & Beverage Exhibition “Food Expo”
- “Thessaloniki International Exhibition”
- “Map of Flavours” Wine Exhibition in Thessaloniki
- “OENORAMA” Wine Exhibition in Athens
Exhibitions with information stand:
- Kavala Exhibition “KAVALA EXPO”
- “Supply Chain and Logistics” Report
- Fruit and Vegetable Exhibition – Logistics “FRESKON”
- “BEYOND” Technology and Innovation Exhibition
In addition, Cypriot industrialists also participate in specialized exhibitions that take place during the year in Greece, based on the “De minimis” support plan for both the agricultural products sector and the industrial products sector.
INDUSTRY AND TECHNOLOGY SERVICE
The Ministry of Education and Culture recognizes entrepreneurship and industry as one of the key pillars for achieving economic growth and prosperity in the country. The creation of more sustainable and competitive enterprises and the development of business activity based on knowledge, technological upgrading and the green economy are expected to contribute significantly to the creation of new jobs and also to the strengthening of the resilience of the economy.
It is noted that the Republic of Cyprus and the Hellenic Republic signed a Memorandum of Cooperation in the field of Small and Medium Enterprises on November 28, 2014. It is very important to further encourage the cooperation between the entrepreneurs of the two countries, especially in the post-pandemic period, so as to achieve full utilization of the opportunities in cutting-edge areas such as renewable energy, intellectual property (IP) and start-up promotion. Further cooperation between Cypriots and Greeks in traditional and new sectors of the economy is imperative, so that we can face the challenges of the future such as energy and technological development.
In this context, the utilization of Greece’s experience and know-how is particularly important and supportive of the Government’s efforts to strengthen and develop the business ecosystem. The Government recommends taking actions aimed at improving and further promoting the economic cooperation between the two countries. This could be done by implementing targeted initiatives in specific areas such as:
- Operation of business exchange programs. These programs will give young entrepreneurs the opportunity to learn and exchange ideas with experienced entrepreneurs.
- Implementation of programs to exchange experiences, know-how and best practices to create a supportive ecosystem of innovation and entrepreneurship.
- Exchange of good practices regarding the incentives granted through the Grant Schemes implemented in the framework of the utilization of resources from the European Structural and Investment Funds.