N Cyprus 109th in GCI ranking

NORTH Cyprus has the 109th most competitive economy among 137 countries worldwide, according to the annual Northern Cyprus Economy Competitiveness Report published by the Cyprus Turkish Chamber of Commerce.

In the report, produced to rank the TRNC within the context of the World Economic Forum’s Global Competitiveness Index (GCI) — which assesses 137 countries on 12 “pillars” of competitiveness — the North Cyprus economy was calculated as 3.77, which would put it in 109th position.

“Having achieved 0.07 more points than last year, North Cyprus has gone up five places in the Global Competitiveness ranking,” said the report, published last Friday.

However it added: “Although North Cyprus’s country score has gone up by about 10 per cent in the past 10 years, it has trailed between 100th and 120th in the GCI ranking. This means that, because the TRNC could not boost its competitiveness as much as the other countries, it has spent the last 10 years almost in deadlock.

“It would be no exaggeration to say that North Cyprus spent 2017 in a political whirlpool. Structural problems dating back many years and low economic competitiveness had, as always, a negative impact on economic growth.

“Economic growth rates registered in North Cyprus did not allow for filling in the economic gaps and creating jobs for the young entering the labour market. While the momentum gained in the tourism and education sectors in particular brought about an improvement in economic indicators, the growth could not be spread across the board.”

An additional problem for the TRNC economy, the reports says, was “the drop in the predictability of the Turkish lira. This situation, which had a profound effect on the import-dependent North Cyprus economy where pricing is to a great extent based on foreign currency, had a negative impact on the already fragile economy”.

It concluded: “The top priority of those governing the country should be to transform this (possibly unsustainable) economic growth into real development in the coming years by making it possible for all segments of society to experience a rise in income, enhanced quality of life and improved living standards.”

The report also showed that North Cyprus, with $13,897 per capita income in 2016, still lagged behind other countries. El Salvador, for example, with a $4,300 dollar per capita income, this year scored the same 3.77 as North Cyprus in the official GCI rankings.

“Furthermore, Ethiopia, which barely reaches $1,000 per capita income, is at 108th with a competitiveness ranking close to that of North Cyprus,” it added.

The 2017-2018 GCI again ranks Switzerland top with a score of 5.86, and the US up one place in second.

Turkey moved up two places to 53rd and South Cyprus 19 places to 64th, while Greece is 87th.