SOAC: Drought is the Biggest Risk to the Economy

The Cyprus Economy and Competitiveness Council (SOAC) has identified prolonged drought and water scarcity as the most significant risk to the Cypriot economy. The findings come from a risk assessment survey conducted for the fourth consecutive year.

According to Evangelos Tryfonos, a member of SOAC, the main risks, based on the combined probability and severity index, are:

• Prolonged drought and water scarcity (91%)
• Cyberattacks on critical infrastructure (82%)
• Worsening climatic conditions (80%)
• Lack of specialized personnel (80%)
• Failure of digital transformation (79%)

Panagiotis Panagiotou, Director of the research firm "Pulse Market Research," stated that the risks were grouped into four categories: geopolitical security and external shocks, institutional resilience and structural risks, social and environmental resilience, and macroeconomic stability.

Dimitris Georgiadis, president of SOAC, emphasized that the discussion on risks takes place in collaboration with the Ministry of Finance, the Central Bank, and the Fiscal Council.