In brief

In brief

  • Accenture in partnership with OEB & CCCI and supported by Bank of Cyprus, Cyta & Logicom conducted the study “Digital Cyprus: Catalyst for Change”.
  • According to our analysis, in 2017 digital contributed by 18% to the total Cypriot Gross Domestic Product (€ 19,6 bn.).
  • Cyprus’s Digital Strategy should focus on 3 pillars: “Graduate” from setting the foundations, “Drive” mass adoption of digital & “Architect” new relationships
  • The projected increase in Cyprus’s digital maturity is expected to have a direct impact on its GDP in the range of 4,8-6,7% in 2022.

In the context of this study “Digital Cyprus: Catalyst for to Change”, we performed the Digital “Anatomy” of Cyprus at a national and industry level, shaped a national digital vision and designed the Action Plan for its operationalization.

Evaluating Cyprus’s digital maturity

To evaluate Cyprus’s digital maturity, we, as Accenture, in co-operation with Oxford Economics, applied the Digital Economic Opportunity Index (DEOI). This index enabled us to capture the extent to which digital has penetrated Cyprus’s economic activity both at a national and at an industry level. According to Accenture’s DEOI, Cyprus scores at the lower end of the digital maturity curve. In fact, the overall score of 25,9 out of 100 confirms Cyprus’s relatively weak position against its global and European peers. Cyprus position is ~20 points below the European average (44,8) and well behind the most digitalized European economies. Nevertheless, if we examine the evolution of the European sample’s digital maturity from 2015 to 2018, we observe that Cyprus’s digital maturity has increased over the last four years by 0,8 points.

Analyzing Cyprus’s digital maturity

Our analysis of Cyprus’s DEOI index indicates that Cyprus scores low across its three levers:

  • Digital Skills: The digital nature of occupations and the skills and knowledge required for people to perform their jobs
  • Digital Technologies: The productive assets related to digital technologies (hardware, software and communications equipment)
  • Digital Accelerators: The environmental, cultural and behavioral aspects of digital components of the economy that support digital entrepreneurship or activities

In more detail, the Cypriot economy demonstrates a relatively higher maturity across its digital skills and accelerators levers but displays significant room for improvement across its digital technologies.

"Realizing Cyprus’ potential, the intent of the study is to serve as a direct call for action for Cypriot companies, institutions and policymakers, so as to urgently promote a shift towards digital."

– DR. KYRIACOS SABATAKAKIS, Country Managing Director

Sizing Cyprus’s digital economy

Cyprus’s low digital maturity both at a national and at an industry level, points to a limited contribution of digital to the Cypriot economy. We have implemented the Digital Economic Value Index (DEVI) framework, to evaluate the total contribution of digital to the Cypriot economic output Gross Domestic Product (GDP).

The findings come as no surprise. Cyprus’s low digital maturity leads to a limited value add on the Cypriot economy. This offers significant room for improvement with regards to the role and impact of digital within the Cypriot economy. The country operates at a moderate 18 percent of its full digital potential. Amidst this digital revolution, we find that Cyprus has initiated its own digital journey. Cyprus’s unique attributes (demographics, size and financial outlook) enable the country to be quicker and more effective in the way it will manage an accelerated digital rotation. Nevertheless, success in the digital era will require the country to shift gears.

Chart showing the Contribution of Digital to the GDP of various economies around the world

Digital Economy as a percentage of the GDP (2017)

Defining a digital vision for Cyprus

Based on our research and taking into consideration Cyprus’ challenges and potential, we developed along with the Cypriot stakeholders the following Digital Vision for Cyprus:

Position Cyprus at the core of the European Digital Economy & Society, by driving the mass adoption of digital, crafting new relationships between the industries and placing the Public Administration as the digital catalyst to elevate productivity and competitiveness at an industry and a national level.

The operationalization of Cyprus’s Digital Vision aims to improve the country’s digital maturity, increase the productivity and uplift the country’s gross domestic product. Our analysis indicates that its operationalization is estimated to increase Cyprus’s digital maturity index (DEOI index) between 5,7- 8,3 points by the year 2022, which is expected to have a direct impact on its GDP in the range of 4,8 to 6,7 percent. This equates to a corresponding GDP uplift in 2022 of about €1-1.4 bn.

Chart showing the GDP Uplift in Cypriot Economy in 2022 following the operationalization of its Digital Vision

2022 GDP Uplift (in Euros and percentage increase)

RELATED: Digital Cyprus: Catalyst for Change (Volume 1)
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RELATED: Digital Cyprus: Industry Digital Potential (Volume 2)
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Dr. Kyriacos Sabatakakis

Country Managing Director

Dr. Jiorgis Kritsotakis

Senior Manager – CMT

Valia Siakavella

Manager – CMT


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