The Information and Telecommunication sector has been the undisputed champion of growth, as manifested by the GDP data published on Sunday by the Statistical Service of Cyprus (CyStat), highlighting the momentum of the sector as a component of the Cypriot GDP.
The rising performance in the ICT sector reflects the ever-increasing importance of technology in economic activity coupled with the efforts of the government to attract the relocation of ICT companies in the island.
According to latest available data released by CyStat, in the last decade the ICT sector marked an average growth rate of 15 per cent outperforming all other sectors of the economy. ICT was followed by accommodation and food service activities, a sector associated with tourism, with an average growth of 12.7 per cent and administrative and support service activities (which also includes tourism-related activities) with an average growth rate of 10 per cent.
According to CyStat’s provisional data, the sector’s share in Cyprus’ gross value-added rose to 9.6 per cent in 2022 third highest behind Wholesale and Retail Trade which tops the ranks with 12.2 per cent of total output and Financial and Insurance Activities with 9.8 per cent. A decade ago, the financial sector was at the top with 12 per cent of the total output, a change manifesting the diversification of the Cypriot economy following the 2013 financial crisis.
In absolute numbers, the ICT sector’s contribution in Gross Value Added (GVA) in 2022 amounted to €2.33 billion, marking a steep increase of 277 per cent compared with the sector’s output a decade ago, with large annual increase in the last three years, driven by the incentives provided by the government to the relocation of foreign ICT companies in Cyprus.