A strong rebound expected soon

Sector should remain vigilant and creative in designing tailored upgraded e-services for their clients without compromising on the quality.

The professional services sector is significantly influenced by external factors and the recession in the global and European economies - mainly due to the pandemic and its business implications - has inevitably left a negative footprint. However, the sector, which demonstrated high resilience levels to the previous financial crisis, is expected to rebound once again, adapting quickly to the emerging circumstances. In recent years, the sector has been restructured to meet the changing needs of businesses, investors and society.

The post-Covid-19 era will clearly be a return to "business with a difference", mainly due to the unprecedented ongoing crisis and restrictions imposed by the lockdown measures. The pipeline of new projects is not expected to be at last year's levels, but we shall rely on technological capabilities to help us maintain the momentum. The professionals of the sector should stay vigilant and creative in designing tailored upgraded e-services for their clients, without compromising quality or damaging client trust. The sector will be called upon to address the continuous adaptation of the business models according to each industry, so that businesses continue to serve the increased client needs in the post-Covid-19 era. "Business as usual" is expected to return gradually, after the wide usage of the vaccine in the society.

One major professional catalyst that cannot be ignored is technology, which disrupts the way in which services are offered to our clients. We have all experienced how the pandemic forcibly accelerated businesses' digital transformation. At KPMG, we acknowledge that technology lies at the forefront of future developments and, therefore, plays a key role in our efforts to enhance our professional service offering in the post-Covid-19 era. Currently, technology enabled us to carry out remotely a lot of work we used to perform at our clients' premises.

Economy today and predictions for 2021

It is anticipated that GDP will contract by four to five per cent this year, due to the pandemic and the slowdown of the economy. Certainly, the economic outlook has become more negative compared to the beginning of the year. A "long U-shaped" recovery is the most likely scenario (recovery in three to five quarters). The year 2021 will be another challenging year for the economy, which is expected to show growth between four to

five per cent.

I believe that over the next months all stakeholders shall base their efforts towards the gradual recovery of our economy on four pillars: relief measures following the lifting of restrictions, strengthening liquidity in the market, tax and other incentives that will accelerate investments and revitalise the market and labour, and proposing specific schemes for the development of vital sectors of the economy such as real estate, tourism, professional services, shipping, investments, entrepreneurship, health, etc.

For Cyprus to become a robust professional services centre, we need to secure its advantages and work towards adapting the services provided to investors and businesses, while offering the right incentives to international businesses to consider headquartering on the island. At the same time, we should be looking at expanding other sectors of the economy, as well as adjusting to the new business environment, by acquiring the necessary skills and by developing new ideas. I have said before and I want to repeat here that our economic model has changed dramatically over the past few years and we should all concentrate on supporting its transformation.