Filenews 2 October 2025- by Angelos Angelodimou
The benefits of strengthening our export activity and what we need to pay attention to in order for the effort of competent and professional officials to succeed
Exports are a key part of a country's economy. And we are not only talking about exports of products, but also of services. They contribute at multiple levels to the development of both the economy itself and businesses, while benefits also arise for the employees.
Unfortunately, exports are not the strong point of the Cypriot economy. Having neglected several sectors, we stopped producing a large number of products, since as a country we chose to import them and therefore, exports have decreased significantly in recent years.
This has resulted in various side effects, which have been magnified over the years and today the authorities are looking for solutions to strengthen the export part and get our country back into the game.
THE PRIMARY SECTOR
More specifically, the primary sector, i.e. agriculture, fishing, livestock and mining (such as mining) has been in decline for years, as a result of which we are not able as a country to produce a large number of products. The excuse that the cost of production is high and therefore it is more advantageous to import these products than to produce them, has caused a number of side effects:
(a) It forced a large number of workers to leave the profession of agriculture and livestock farming, since they could hardly compete with imported products.
(b) The deficit in the trade balance increased, as exports decreased and imports increased.
(c) The inflow of foreign exchange decreased.
At the same time, it has been realized that several products have enormous potential and export prospects. With halloumi and medicines as its flagship, our country is trying to recover in the field of exports with the benefits being visible.
Especially:
(a) It will help businesses to increase their turnover and produce even better quality products to compete with foreign ones.
(b) It will contribute to the employment of more employees, since the work of businesses will increase.
(c) The trade deficit will be reduced.
CONDITIONS
However, in order for this project to be successful, certain conditions must be met. We cannot use tactics of past years at a time when developments are running at a dizzying pace.
Therefore:
(a) We should utilize the technology part, in order to reduce production costs and to increase the number of products produced in less time.
(b) Take advantage of modern marketing methods, since it is not enough to produce a good product, but you have to market it correctly and intelligently in the markets, so that it looks more attractive compared to the competition.
(c) We should give incentives to various categories of citizens to engage in specific sectors, in order to produce the products or services.
(d) To determine in advance a specific strategy in relation to the products and services we will export, as well as the markets to which we will target.
It is noted that recently the Minister of Finance, Makis Keravnos, stated that one of the Ministry's goals is to encourage our export efforts. As he said, the current account balance in 2023 was negative, at 12.1%. He announced that a team with officials of the Ministry of Finance has been set up on this issue, with the aim of "enriching our economic model in a way that addresses any problems that exist in the current account balance".
The trade deficit was €8,134.3 mil. for the period January-December 2024 compared to €8,470.4 mil. in the corresponding period of 2023.
THE PRODUCTS
Let's also look at the main products we exported in 2024: In first place are fossil fuels and oils worth €1.19 billion and at a rate of 49.2% of the total. Of course, it should be noted that as it is understood, we do not produce fossil fuels in Cyprus, but we import them, they may be processed and we re-export them abroad, however it is recorded as a Cypriot export.
In second place were pharmaceuticals, worth €348 million and 14.4% of the total.
In third place comes halloumi, with exports worth €323.9 million and a percentage of 13.4% of the total.
This is followed by the category "waste and scrap of paper, glass and metals" with a value of €87.6 million and a percentage of 3.6% and then products such as fruit and vegetable juices with a value of €48.1 million and a percentage of 2%, fish with a value of €47.6 million and a percentage of 2%, as well as potatoes, while at a rate of 1.3% follow the categories of telecommunications equipment and fire extinguishers, with an amount close to €30 million.
HALLOUMI RISES
The picture is approximately the same in the first half of 2025. The only notable difference is that halloumi moved into second place, surpassing medicines.
More specifically, regarding the period January – June 2025, the data are as follows:
In first place is again the category "fossil fuels and oils" with its value reaching 1.10 billion and the percentage of the total skyrocketing to 60.9%.
Halloumi follows in second place with €201.1 million and a percentage of 11.1%.
In third place are medicines with €174.5 million and a percentage of 9.7%. This is followed by the category "waste and scrap of paper, glass and metals" with a value of €41.8 million and a percentage of 2.3% and then products such as potatoes with a value of €37 million and a percentage of 2%, fruit and vegetable juices worth €22.9 million and a percentage of 1.3% for fish with €20.5 million and a percentage of 1.1%, telecommunications equipment with €20.7 million and a percentage of 1.1% and fire extinguishers with a value of €18.5 million and a percentage of 1%.
THE PROS AND CONS
It is recalled that in his earlier statements to "F", the former General Secretary of the CCCI, Marios Tsiakkis, had stated that he sees significant prospects for the strengthening of both already exported products and new ones. However, he added, there should be specific targeting, both in relation to the products we will promote and in relation to the markets we will choose.
More specifically, as the Secretary General of the CCCI pointed out, if we take processed agricultural products as an example, we will find that we can produce enough quality products due to the weather conditions, however due to the limited area of our island, we are not able to produce significant quantities, so that we are able to penetrate large markets and at the same time be competitive.
At the same time, the cost of energy, which is quite high in Cyprus, compared to other countries and is a significant burden for businesses, labour costs and water costs are inhibiting factors in terms of the competitiveness of our products. For this reason, we should aim, as he said, on quality and penetrate the so-called niche markets, in order to differentiate ourselves from the competition.
- In turn, the Director of Industrial Development, Innovation and Environment of the CCCI, Andreas Andreou, referred to three important factors for strengthening our exports. Specifically, as Mr. Andreou said:
- (a) In recent years, several technology companies have been active in Cyprus, which promote their products both in the Cypriot market and abroad. As he mentioned, we should give more importance to this sector as there are conditions for it to develop enough and contribute to the strengthening of exports.
- (b) The Commercial Attachés of the Embassies could be used to a greater extent, in a way that they can investigate the market for which they are responsible and prepare relevant data on the possibilities of penetration in them and on the products that are in demand.
- (c) Due to the size of most Cypriot businesses, which are mostly small and medium-sized, incentives could be given by the state to have mergers or cooperatives (clusters) with the aim of creating economies of scale and producing cheaper products and in larger quantities.
FROM INSIDER MAGAZINE
