Shared by Eurofast:
Cyprus Investment Snapshot from IMD 2025 Rankings
Cyprus has slipped one place in the IMD World Competitiveness Ranking 2025, moving from 43rd to 44th out of 69 global economies. While the drop may seem minor, the latest data reveals meaningful shifts in the country’s economic and investment environment – signals that current and future investors should take seriously.
According to the IMD Competitiveness Center, two key factors contributed to the decline:
- A fall in economic performance, linked to reduced foreign direct investment (FDI) and fewer outbound investments.
- A notable drop in infrastructure quality, including challenges in energy capacity, water resources, and air transport efficiency – resulting in Cyprus ranking 46th for infrastructure, its lowest since 2017.
Despite these headwinds, Cyprus continues to show strength. Government efficiency rose to 26th globally, supported by fiscal reform and improved institutional performance. Business efficiency also improved, particularly in access to capital and perceptions of Cyprus as a viable business hub.
Investors can still count on Cyprus’s favourable tax regime, skilled workforce, and political stability – but infrastructure issues may impact logistics, manufacturing, and real estate developments.
Eurofast’s Insight: Looking Beyond the Numbers
BKR member firm Eurofast provides regional insight into how these rankings play out on the ground. Their local advisory teams help businesses:
- Evaluate market-entry opportunities
- Navigate infrastructure or regulatory risks
- Plan tax and compliance strategies tailored to Cyprus and EU-wide competitiveness trends
Understanding how Cyprus ranks – and why – can shape smarter decisions in today’s rapidly evolving business climate.
For tailored guidance, contact: [email protected]