Cyprus – Greece Trade Relations (Jan. – Dec. 2022)

Cyprus trade with Greece in 2022 (January – December 2022) was at a decade high for both markets. Specifically, Greece is the third export destination of Cypriot products after the United Kingdom. At the same time, the Cypriot market particularly prefers Greek products, and as a result Greece is in the first place in imports from Cyprus.

This fact is due to the continuous promotion and support of Cypriot exporters by the Ministry of Energy, Trade and Industry of Cyprus in cooperation with its Commercial Counsellors around the world. It is also a reward for the previously made efforts for further strengthening Cyprus-Greece trade relations, which even in adverse conditions such as the economic crisis and the pandemic showed signs of serious recovery and not, as predicted, fatigue.

Confirming the above mentioned, the domestic exports of Cyprus to Greece showed an increase of 13.9% in twelve months of 2022 (2022: 121 million and 2021: €106.3 million). Exports (domestic and re-exports) of Cypriot products in 12 months of 2022 increased by 14% to €297m (2021: €260m) making Greece once again the main European import country for 2022. Also, the imports of Greek products in Cyprus for the same period (Jan. – Dec. 2022) amounted to € 2.64 billion, showing an increase of 27% compared to the corresponding period of the previous year (Jan. – Dec. 2021: € 2.08 billion).

(Source: Cyprus Statistical Service)

Regarding halloumi, Greece for the period of twelve months (Jan. – Dec. 2022) was in fifth place (from eighth in 2021) among the countries with large imports, such as the United Kingdom, Sweden, Germany and Australia. Halloumi exports to Greece for that period in 2022 showed an increase of 29% compared to the corresponding period of 2021 (2022: €11.34 million and 2021 €8.8 million) which is attributed to the opening of catering sector after many months of market closure including restaurants, hotels, cafes, refreshments etc.

It is noted that the trade balance between Cyprus and Greece has been in deficit for many years to the detriment of Cyprus, but this is normal since Greece has a larger production. It is important to emphasize commercial transactions between Cyprus and Greece for the mutual future benefit of both sides.

Development of Trade Relations Cyprus – Greece

Based on the statistics available, we can state that the trade relations of Cyprus with Greece for 2022 reached a very high level, which proves the inseparable and well-established commercial relations between the businesses of the two countries.

Cypriot businessmen predict that they will intensify their activities in Greece during 2023 in Services sector such as education, insurance companies, law and accounting offices, hotel businesses, land development, real estate and constructions. It is of the utmost importance to further encourage cooperation between the entrepreneurs and companies of the two countries in the post-pandemic period as well, so that opportunities in cutting-edge areas such as renewable energy, intellectual property (IP) issues and the promotion of start-ups can be fully exploited. The future commands the cooperation of Cypriots and Greeks in traditional and new sectors of the economy, so that we can face the challenges of the future such as energy and technological development.

Estimated areas of cooperation between Cyprus and Greece

Among other advantages that Cyprus offers for the development of its trade with member countries of the European Union, it strengthens the cooperation of Greek and Cypriot businessmen so that they can take advantage of the opportunities offered in the Middle East and the Balkans. The trade section of the Ministry of Energy, Trade and Industry of Cyprus through the Export Helpdesk service helps Cypriot entrepreneurs to get in touch with corresponding importing companies in various countries around the world. Cypriot businessmen are active in Greece in extremely important sectors such as higher education, legal and insurance companies, consulting services, hotel industry, land development, transport and construction.

Greece is a unique opportunity for Cypriots because it offers the space for more investments and developments, as well as a passage for expansion in the Balkan countries building up networks with other EU countries. Accordingly, many Greek companies have expanded in Cyprus in the fields of petroleum products, supermarkets and acquisition of existing Cypriot companies.

Cyprus has traditionally emphasized professional services,which are developing steadily with very evident results. The fact that Cyprus today is a well-established regional business and investment center is mainly the result of the various services available and the high professional quality it offers.

The main products exported to Greece from Cyprus, which show further scope for cooperation and development, are potatoes, citrus fruits, meat, fish, dairy products, iron scrap, iron and steel scrap, pharmaceutical products and plastics. On the other hand, the main products that Cyprus imports from Greece are petroleum products, clothing and footwear, electrical machinery, machinery and pharmaceutical products.

Promotion of Cypriot Products and Services in Greece and Organization of Seminars

Since 1983, the Ministry has established a Trade Center in Athens, the main objective of which is the promotion of Cypriot products and services in the Greek market.

In the context of further efforts to promote the education sector, the Ministry, in collaboration with the CCCI, is organizing a mission on April 4,5,and 8 2023 to promote Cypriot Universities in Herakleion Crete, Chania and Athens. The aim of the mission is to inform local career guidance counselors, teachers, parents and guardians, students, as well as other potential stakeholders about the educational and research programs offered by Cypriot Universities. Similar missions were carried out in previous years, from 2010 until today, in various cities in Greece, namely Thessaloniki, Ioannina, Serres, Volos, Karditsa, Patras, Kalamata, Alexandroupolis, Kavala, Xanthi and Larissa.

In the above framework, the participation of the Ministry with an information stand International Logistics and Supply chain exhibition, which takes place in Athens, is included.

Proposals

In order to further promote Cypriot services in Greece, it is deemed imperative to intensify the activities regarding:

• The development of closer cooperation between the Chamber Unions of the two countries
• The possibility of promoting business cooperation networks of both countries, taking into account that Greece can be a distribution channel for the expansion of Cypriot companies in the Balkans and the region.