Larnaca is experiencing a period of economic revival with key projects underway, including the removal of oil tanks, construction of the Larnaca-Dekelia road, and the development of a port-marina. Despite challenges such as geopolitical tensions and predictions of slowed GDP growth, the city is determined to sustain its revitalization and growth through collaboration among government, the Chamber of Commerce, and other stakeholders.
What are the key factors in Larnaca’s economic revival?
Larnaca’s economic revival is driven by key projects such as the removal of oil tanks, construction of the Larnaca-Dekelia road, and the development of a port-marina. Collaboration among government, the Chamber of Commerce, and stakeholders addresses challenges like unemployment and energy costs. Despite geopolitical tensions and predictions of slowed GDP growth, local efforts aim to sustain Larnaca’s revitalization and growth.
A Time of Transformation in Larnaca
The city of Larnaca is witnessing a remarkable phase of economic resurgence, as outlined by Stavros Stavrou, president of the Larnaca Chamber of Commerce & Industry (Evel) during the annual assembly. According to Stavrou, Larnaca’s advancement was long-awaited, with the city now “firmly on the path to revitalisation.”
The city’s journey to revival is marked by several key projects poised to change its economic landscape. The removal of longstanding oil tanks and gas facilities is paving the way for a cleaner and more appealing coastal area. The Larnaca-Dekelia road, a major artery for local transportation, is undergoing construction, and the area will also benefit from the development of a port-marina. Phase 3 of the Larnaca-Dekelia road is another significant project contributing to the infrastructural upgrade of the region.
Addressing New Risks and Concerns
Despite these promising developments, Stavrou has brought to light new challenges on the political and economic horizon. In particular, he noted Cyprus’ geographical proximity to the geopolitical tensions in neighboring regions, which inevitably spills over into economic impacts.
Stavrou also highlighted the current unemployment rate, which sits at 5.9 per cent. He proposed a collaborative approach to tackling this challenge, involving the government, Chamber of Commerce, and other stakeholders to navigate the labour shortages that many sectors are facing.
Energy and Economic Predictions
On a similar note, Othonas Theodoulou, the vice president of the Cyprus Chamber of Commerce (Keve), voiced his concerns about the rising energy costs and the potential repercussions on various economic sectors such as tourism and investment. Theodoulou underscored the uncertainty brought about by the conflict in Israel, noting that it casts a shadow over the economic prospects of Cyprus.
Moreover, Theodoulou provided insights into the expected economic performance for the upcoming year. He cited EU and government estimates predicting a growth rate decrease to 2-2.5 per cent of GDP, a significant dip from the previous year’s 5.2 per cent.
He also pointed out the likely surge in inflation and unemployment as a result of the crisis in Israel. The anticipated end of the tourist season could further elevate the unemployment rates.
The Local Perspective and Actions
Amid these concerns, local officials like Larnaca mayor Andreas Vyras focus on the collaborative efforts that have defined the city’s recent progress. Vyras praised the cooperation between the Larnaca Municipality, Keve, and the regional board of tourism (Etap), instrumental in driving development and resolving important issues.
Larnaca, he noted, has been transforming over the last seven years. The concerted efforts are set to continue, with the aim of fostering a thriving environment for all residents. Vyras also commended the private sector and organised bodies in the city for their commendable efforts.
Larnaca’s Future Landscape
Looking ahead, Larnaca seems poised for significant economic activity, with investments in tourism, real estate, and infrastructure well underway. Yet, as highlighted by the leaders of local commerce and industry, external factors, such as regional instability, could pose risks to the area’s economic trajectory.
Larnaca’s economic narrative is one of revitalisation, ambition, and cautious optimism. The city is determined to build upon its recent successes and overcome the challenges that lie ahead, striving toward a prosperous future for its residents and businesses.
Kyriacos Nicolaou
Kyriacos is a dedicated member of the Cyprus Mail’s team, delving into critical business and finance issues since joining in 2020. With a focus on local firms, burgeoning startups, and the wider economic scene, he continues to shed light on the technological advancements shaping the market.
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Quick Recap
- Larnaca is experiencing a period of economic revival with key projects underway, including the removal of oil tanks, construction of the Larnaca-Dekelia road, and the development of a port-marina.
- Collaboration among government, the Chamber of Commerce, and stakeholders addresses challenges like unemployment and energy costs.
- Geopolitical tensions and predictions of slowed GDP growth pose potential challenges, but local efforts aim to sustain Larnaca’s revitalization and growth.
- Larnaca’s economic resurgence is marked by projects that will change the city’s economic landscape, including the removal of oil tanks and gas facilities, the construction of the Larnaca-Dekelia road, and the development of a port-marina.
- Efforts to address challenges include collaboration among government, the Chamber of Commerce, and other stakeholders, and a focus on tackling unemployment and rising energy costs.
