Outgoing ICPAC President reflects on accountancy profession's impact on Cyprus economy in farewell address

In a wide-ranging and reflective address at the General Assembly of the Institute of Certified Public Accountants of Cyprus (ICPAC), outgoing President Nicos Chimarides emphasised the critical role of the accountancy profession in shaping Cyprus’ economic trajectory amid global volatility. Marking the end of his tenure, Chimarides used the platform to both assess the country’s economic standing and outline strategic priorities for the future.

Chimarides opened his speech by noting the favourable economic indicators of the Cypriot economy, with GDP growth reaching 3.4% in 2024 and projected at 3% in early 2025—among the highest in the EU. Unemployment remains low, inflation is nearing the European Central Bank’s 2% target, and public debt has fallen close to 60% of GDP.

“These achievements are all the more remarkable,” he said, “given ongoing geopolitical tensions in Ukraine and the Middle East, and a global economic slowdown.” Citing World Bank forecasts for the weakest global growth since the 1960s, he stressed the need for continued vigilance and reform to preserve economic resilience.

Deepening ties with India

A significant portion of the address focused on Cyprus’ growing economic relationship with India. Reflecting on discussions from the previous year’s Assembly, Chimarides noted the impressive progress in bilateral cooperation. “Within just 12 months, major Indian conglomerates have established subsidiaries in Cyprus, and the recent visit of the Indian Prime Minister marks a milestone,” he said.

He expressed gratitude to Cypriot and Indian officials, including Foreign Minister, Deputy Ministers, Invest Cyprus, and the Indian High Commissioner to Cyprus, Shri Manish, for their coordinated efforts. These partnerships, he noted, are already paying dividends in tourism, tech, and investment.

ICPAC has also signed a draft cooperation protocol with its Indian counterpart, ICAI, pending final approval by the Indian government.

Tax reform and PPPs as a means of strengthening Cyprus' appeal

Chimarides reiterated ICPAC’s support for structural reforms to safeguard Cyprus’ global standing and attract investment. This includes backing the creation of the National Sanctions Implementation Unit and proposing alignment with the new European Anti-Money Laundering Authority (AMLA).

On tax reform, he urged simplification, digitisation, and fairness to strengthen Cyprus’ appeal to foreign investors. “We must move from design to execution,” he stated, stressing public-private partnerships (PPP) as the key to impact.

Driving ESG and digital transformation

The ICPAC President positioned the institute as a driver of sustainability and transparency, highlighting its promotion of ESG reporting frameworks and upskilling initiatives. He also pointed to the profession’s evolution in the age of AI and digitalisation, where ICPAC continues to equip members with the tools to remain competitive and credible on the global stage.

“Through integrity and transparency, we build investor trust and long-term growth,” he added.

Tech growth, demographic challenges and institutional integrity

Cyprus, Chimarides noted, has become one of the fastest-growing tech hubs in Europe over the past decade, driven by innovation and policy support. He called for increased investment in R&D—targeting 1.5% of GDP—and policies to attract and retain local and international talent. "The effort to repatriate these compatriots of ours, as well as the effort to attract bright foreign minds, must continue in order to establish the infrastructure that will support the further development of the economy."

Chimarides also flagged long-term socioeconomic issues such as migration, pensions, and demographic shifts, urging early, thoughtful intervention.

A personal farewell and institutional commitment

Closing his final address as ICPAC President, Chimarides reflected on his 13 years on the Board—two of them as President. He thanked Board members, staff, committee volunteers, and the broader membership for their trust and dedication. He highlighted recent investments in infrastructure, such as new office space, to support the Institute’s growth.

“I remain a committed partner on our shared journey toward a strong, ethical, and forward-looking profession,” he concluded.