IT and Art Clusters to boost Cyprus economy growth by almost 50%

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The real GDP growth of Cyprus economy forecasted by European Commission is about 3.2% in 2022 and 2.1% in 2023, but local authorities and business associations are planning to raise this rate up to 5% in 2022 and 4% in 2023 by applying cluster approach. This is a 50% increase in growth rates.

Recent European Commission report says Cyprus economy real GDP growth is forecast at 3.2% in 2022 and 2.1% in 2023. The main drivers of growth are expected to be domestic demand and, albeit to a lesser extent, net exports of services. The Cypriot economy surprised on the upside in the first quarter of 2022. Arrivals of tourists and revenues increased considerably in the first months of 2022 and reached around 75% of pre-pandemic levels. The prospects for the sector remain positive for the summer season, based on planned international flights data and surveys on tourist accommodation reservations.

However, local authorities are planning to raise the growth rates by applying cluster approach – organizing hot spots for tourists and business attraction. The example is the recently announced BEON1X Art cluster and Open Mind Music Festival that are intended to attract more than 100 mln euro to local economy in 2022-2023.

TechIsland, the largest non-profit technology organization in Cyprus, accounting for over 130 member companies employing over 7000 people, has announced BEON1X Open Mind Music Festival to become the largest electronic music festival on an island with its 30 000 visitors, and one of the biggest events of this autumn in Europe, allowing it to attract over 10 mln euro. The festival is planned to become a regular event held on an annual basis and the first stage of the launch of a unique international socio-cultural project introduced in Cyprus, which the organizers behind the festival hope will become one of the largest art clusters in the world. The Art Cluster is projected to attract around 100 mln euro by the end of the year 2022. It is planned that the cluster will become a stage for an ongoing festival of festivals – music, art, dance and other cultural events.

Cyprus economy could grow faster-than-expected, mainly as a result of supporting business initiatives in creating clusters, notably business services, tourism and IT. With this initiative the expected grow is more than 5% GDP in 2022 despite the fallout from the global financial decline”, – the Finance Ministry reported.

Among others are the Innovation, Start-up and Entrepreneurship Cluster of UCLan Cyprus that aims to advance and promote research-based activities in the field of innovation and entrepreneurship. Moreover, RISE recently launched Cluster for the Advancement of Game Development in Cyprus. Also, the Cyprus Chamber of Commerce and Industry is working closely with CLUSTER associate partner, the Youth Board Cyprus to make the most of their contribution to equip young people, in particular women, with skills in demand on the job market. In particular, the Youth Board of Cyprus contributed throughout January 2022 to the collection of demographic data for the NEETs profiling practice.

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