COVID-19 Challenges and Opportunities in Cyprus

Over the past few months, we have witnessed an unprecedented sequence of unfortunate events which not only affected our way of living and the healthcare system but also threaten to unbalance businesses and the economy on a global basis. 

Global markets have become increasingly complex, and it is likely that companies will be faced with a dreadful financial turmoil which will potentially and inevitably adversely affect their business value. We aim to provide a perspective on the evolving situation, the possible implications and the opportunities that Senior Executives can take advantage of.

Governments have limited reserves in providing financial injections to businesses and there are concerns as to the ability to provide adequate support in the long term – as implications in commercial and private lives are yet to come. Like most countries, Cyprus does not form an exception. Cyprus economy is expected to experience declines in gross domestic products which are expected to reach up to 7% – 10% of their annual GDP mostly due to the negative implications of the pandemic on the tourism industry. Such results strike fear into investors and consumers as well. Considering that and the uncertainty of a speedy recovery over the expected recession, we should be aware of the profound implications such as the decrease in real income, higher unemployment, lower levels of industrial production and a decline in retail sales. 

However, as Shannon L. Alder said – “After every storm, there is a rainbow. If you have eyes, you will find it. If you have wisdom, you will create it”. Now is the time to observe, think and act. By spreading awareness towards the organisations and finding possible ways that could convert these unprecedented events into an opportunity to reform certain approaches, Executives will be able to set up a plan in order not only to retain their businesses but also to shift to the ‘next normal’. 

COVID-19 has provided the greatest incentives for further technological development. It is notable that digital infrastructure plays a vital role nowadays because of its ability to predict and model outbreaks, such as pandemics, as well as to ensure smooth business continuity during such unfortunate events. Thus, all organizations must place the highest importance more than ever before in assessing their current IT infrastructure and evaluate their need to invest in upgrades. This will enable Executives to manage possible risks by minimising potential harm to their existing businesses, especially during economic downturns.

As a general observation after COVID-19 period, there will be a fundamental need for companies to adjust their operations and workforce with empowered data and plan long-term goals. Organisations are expected to build more equitable, inclusive and resilient environments that are better prepared to overcome similar uncontrollable natural forces in order to ensure their long-lasting sustainability. 

Moreover, based on companies’ financial condition and/or capabilities there are available growth strategies that may be adopted in an effort to increase their revenues and profits. Some common business growth strategies include market penetration, market expansion, product expansion, diversification, merger and acquisition.

In an effort to present credible solutions and advice on possible ways to overcome and/or face the forthcoming crisis we will be hosting a webinar in collaboration with LEGAL 500 on the 09th of June, 2020. The webinar will focus on addressing the impacts of COVID-19 in the Cyprus market and help companies prepare to respond rapidly to the forthcoming challenges.