Drought Poses Biggest Threat to Cypriot Economy: SOAC Research Reveals

The Council for Economic and Competitiveness of Cyprus has ranked the water crisis as the number one risk to the Cypriot economy, according to research conducted for the fourth consecutive year. Prolonged drought and water scarcity received 91% of responses, surpassing other significant risks such as cyberattacks on critical infrastructure (82%), worsening climate conditions (80%), a shortage of skilled personnel (80%), and the failure of digital transformation (79%). The President of the Council, Dimitris Georgiades, emphasized that the systematic recording of risks aims to facilitate early identification and the creation of mechanisms to prevent or mitigate their consequences. The research highlights the need for preparation and addressing the potential impacts of the water crisis on the economy. Furthermore, Mr. Georgiades raised the issue of a risk analysis culture in public life, pointing out that the examination of adverse scenarios and impact assessment are often omitted from political and economic decisions. Integrating risk analysis into decision-making processes is considered crucial for effectively addressing challenges. Overall, the SOAC research highlights the water crisis as the most immediate and significant threat to the Cypriot economy, requiring immediate and coordinated action to address it.